1.1 A bill for an act
1.2 relating to taxation; modifying individual income and corporate franchise taxes,
1.3 property taxes, local government aids, sales and use taxes, tax increment financing
1.4 provisions, special local taxes, and other various taxes and tax-related provisions;
1.5 modifying the political contribution refund; modifying the beginning farmer credit;
1.6 providing for disclosure of certain corporate franchise tax information; providing
1.7 for electronic direct free filing for individual income tax returns; providing a
1.8 subtraction of discharge of coerced debt and excluding that discharged debt from
1.9 certain definitions of income; modifying the child tax credit; modifying the housing
1.10 credit; providing nonconformity to certain worker classification rules; modifying
1.11 and providing for certain property tax exemptions; modifying property
1.12 classifications; providing an advance homestead credit for seniors; providing an
1.13 advance credit of homestead credit refunds; providing for land bank organizations;
1.14 modifying use of certain local government aids; providing for local government
1.15 aid penalty forgiveness; reducing the credit for research for the provider tax;
1.16 providing for an amusement device gross receipts tax; repealing the tax on illegal
1.17 cannabis and controlled substances; providing a sales and use tax exemption for
1.18 certain construction materials; modifying and providing for certain local tax
1.19 increment financing authority; clarifying the tax base for local lodging taxes;
1.20 decreasing certain local special tax rates; modifying use of funds by lawful purpose
1.21 gambling organizations; providing for land-value taxation districts; providing for
1.22 certain financial assistance to units of local government; requiring reports;
1.23 appropriating money; amending Minnesota Statutes 2024, sections 10A.02,
1.24 subdivision 11b; 10A.322, subdivision 4; 41B.0391, subdivision 4; 272.02,
1.25 subdivisions 7, 19, by adding subdivisions; 273.13, subdivision 25; 273.1392;
1.26 273.1393; 273.38; 273.41; 275.065, subdivision 3; 276.04, subdivision 2; 289A.08,
1.27 subdivision 1; 290.0132, by adding a subdivision; 290.06, subdivision 23; 290.0661,
1.28 subdivision 1; 290.0671, subdivision 1a; 290.0683, subdivision 3; 290.92, by
1.29 adding a subdivision; 290A.03, subdivisions 3, 13, by adding subdivisions; 295.53,
1.30 subdivision 4a; 297A.61, subdivision 3; 297A.68, subdivisions 3a, 45; 349.12,
1.31 subdivision 25; 469.1812, by adding a subdivision; 469.1813, subdivisions 1, 6,
1.32 by adding a subdivision; 469.190, subdivisions 1, 7; 477A.30, subdivisions 4, 7;
1.33 609.902, subdivision 4; Laws 1986, chapter 396, section 5, as amended; Laws
1.34 1986, chapter 400, section 44, as amended; Laws 2010, chapter 389, article 7,
1.35 section 22, as amended; Laws 2014, chapter 308, article 6, section 9, as amended;
1.36 Laws 2017, First Special Session chapter 1, article 6, section 22; proposing coding
1.37 for new law in Minnesota Statutes, chapters 270B; 273; 289A; 290A; 295; 428A;
1.38 repealing Minnesota Statutes 2024, sections 13.4967, subdivision 5; 297D.01;
1
REVISOR EAP/VJ 25-0403002/20/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2274
NINETY-FOURTH SESSION
Authored by Gomez03/13/2025
The bill was read for the first time and referred to the Committee on Taxes 2.1 297D.02; 297D.03; 297D.04; 297D.05; 297D.06; 297D.07; 297D.08; 297D.085;
2.2 297D.09, subdivisions 1, 1a, 2; 297D.10; 297D.11; 297D.12; 297D.13; 477A.30,
2.3 subdivision 8.
2.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
2.5 ARTICLE 1
2.6 INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES
2.7 Section 1. Minnesota Statutes 2024, section 10A.02, subdivision 11b, is amended to read:
2.8 Subd. 11b.Data privacy related to electronic reporting system.(a) The board may
2.9develop and maintain systems to enable treasurers to enter and store electronic records
2.10online for the purpose of complying with this chapter. Data entered into such systems by
2.11treasurers or their authorized agents is not government data under chapter 13 and may not
2.12be accessed or used by the board for any purpose without the treasurer's written consent.
2.13Data from such systems that has been submitted to the board as a filed report is government
2.14data under chapter 13.
2.15 (b) For purposes of administering the refund under section 290.06, subdivision 23, the
2.16board may access or use the following data entered and stored in an electronic reporting
2.17system and share the data with the commissioner of revenue: (1) the amount of the
2.18contribution; (2) the name and address of the person requesting the refund; (3) any unique
2.19identifier for the contribution; (4) the name and campaign identification number of the party
2.20or candidate that received the contribution; and (5) the date on which the contribution was
2.21received. Data accessed, used, or maintained by the board under this paragraph is private
2.22data on individuals, as defined in section 13.02, subdivision 12.
2.23 EFFECTIVE DATE.This section is effective January 1, 2027.
2.24 Sec. 2. Minnesota Statutes 2024, section 10A.322, subdivision 4, is amended to read:
2.25 Subd. 4.Refund receipt forms receipts; penalty.(a) The board must make available
2.26to a political party on request and to any candidate for whom an agreement under this section
2.27is effective, a supply of official electronic refund receipt forms receipts that state in boldface
2.28type that:
2.29 (1) a contributor who is given a receipt form is eligible to claim a refund as provided in
2.30section 290.06, subdivision 23; and
2.31 (2) if the contribution is to a candidate, that the candidate has signed an agreement to
2.32limit campaign expenditures as provided in this section.
2Article 1 Sec. 2.
REVISOR EAP/VJ 25-0403002/20/25 3.1 The forms must provide duplicate copies of the receipt to be attached to the contributor's
3.2claim. An electronic receipt must only be issued for a contribution of $10 or more. Each
3.3receipt must include a unique receipt validation number that allows the commissioner of
3.4revenue to verify the information on the receipt with the Campaign Finance Board. A
3.5political party or candidate may provide a printed copy of the electronic receipt to the
3.6contributor.
3.7 (b) At least once a week, the board must provide the commissioner of revenue a receipt
3.8validation report. For each contribution reported to the board during the week, the report
3.9must include:
3.10 (1) the date and amount of the contribution;
3.11 (2) the name and address of the contributor;
3.12 (3) the name and campaign identification number of the party or candidate that received
3.13the contribution; and
3.14 (4) the receipt validation number assigned to the contribution.
3.15 (b) (c) The willful issuance of an official refund receipt form or a facsimile of one to
3.16any of the candidate's contributors by a candidate or treasurer of a candidate who did not
3.17sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed
3.18by the board.
3.19 (c) (d) The willful issuance of an official refund receipt form or a facsimile to an
3.20individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to
3.21a civil penalty of up to $3,000 imposed by the board.
3.22 (d) (e) A violation of paragraph (b) (c) or (c) (d) is a misdemeanor.
3.23 (f) A receipt validation report and a receipt validation number prepared pursuant to this
3.24section are private data on individuals, as defined in section 13.02, subdivision 12.
3.25 EFFECTIVE DATE.This section is effective for contributions made after December
3.2631, 2026.
3.27 Sec. 3. Minnesota Statutes 2024, section 41B.0391, subdivision 4, is amended to read:
3.28 Subd. 4.Authority duties.(a) The authority shall:
3.29 (1) approve and certify or recertify beginning farmers as eligible for the program under
3.30this section;
3Article 1 Sec. 3.
REVISOR EAP/VJ 25-0403002/20/25 4.1 (2) approve and certify or recertify owners of agricultural assets as eligible for the tax
4.2credit under subdivision 2 subject to the allocation limits in paragraph (c);
4.3 (3) provide necessary and reasonable assistance and support to beginning farmers for
4.4qualification and participation in financial management programs approved by the authority;
4.5 (4) refer beginning farmers to agencies and organizations that may provide additional
4.6pertinent information and assistance; and
4.7 (5) notwithstanding section 41B.211, the Rural Finance Authority must share information
4.8with the commissioner of revenue to the extent necessary to administer provisions under
4.9this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority
4.10must annually notify the commissioner of revenue of approval and certification or
4.11recertification of beginning farmers and owners of agricultural assets under this section.
4.12For credits under subdivision 2, the notification must include the amount of credit approved
4.13by the authority and stated on the credit certificate.
4.14 (b) The certification of a beginning farmer or an owner of agricultural assets under this
4.15section is valid for the year of the certification and the two following years, after which
4.16time the beginning farmer or owner of agricultural assets must apply to the authority for
4.17recertification.
4.18 (c) For credits for owners of agricultural assets allowed under subdivision 2, the authority
4.19must not allocate more than $6,500,000 for taxable years beginning after December 31,
4.202022, and before January 1, 2024, and $4,000,000 for each taxable years beginning after
4.21December 31, 2023 year. The authority must allocate credits on a first-come, first-served
4.22basis beginning on January 1 of each year, except that recertifications for the second and
4.23third years of credits under subdivision 2, paragraph (a), clauses (1) and (2), have first
4.24priority. Any amount authorized but not allocated for taxable years ending before January
4.251, 2023, is canceled and is not allocated for future taxable years. For taxable years beginning
4.26after December 31, 2022, Any amount authorized but not allocated in any taxable year does
4.27not cancel and is added to the allocation for the next taxable year. For each taxable year,
4.2850 percent of newly allocated credits must be allocated to emerging farmers. Any portion
4.29of a taxable year's newly allocated credits that is reserved for emerging farmers that is not
4.30allocated by September 30 May 31 of the taxable year is available for allocation to other
4.31credit allocations beginning on October June 1.
4.32 EFFECTIVE DATE.This section is effective for taxable years beginning after December
4.3331, 2024.
4Article 1 Sec. 3.
REVISOR EAP/VJ 25-0403002/20/25 5.1 Sec. 4. [270B.163] DISCLOSURE OF CERTAIN CORPORATE FRANCHISE TAX
5.2INFORMATION.
5.3 (a) Except as otherwise provided in this section, within one month from the first day of
5.4the third calendar year following the calendar year in which a taxpayer's taxable year ends,
5.5the commissioner must make the following information available on a website:
5.6 (1) a corporation's corporate franchise tax return required under section 289A.18,
5.7subdivision 1, and any amended or adjusted returns;
5.8 (2) all corporate franchise tax forms relating to the calculation of income, apportionment,
5.9and calculation of tax; and
5.10 (3) the corporation's identity for state corporate franchise tax purposes.
5.11 (b) This section does not authorize the commissioner to disclose a corporation's federal
5.12return or federal return information.
5.13 (c) This section applies to a corporation required to file a return under section 289A.08,
5.14subdivision 3, that has $250,000,000 or more in aggregate gross sales or receipts in a taxable
5.15year as determined by the original or most recent amended or adjusted return, including a
5.16unitary business under section 290.17, subdivision 4.
5.17 (d) Compliance with this section by the commissioner is not a violation of this chapter.
5.18 EFFECTIVE DATE.This section is effective for information required to be made
5.19available in calendar years beginning after December 31, 2025.
5.20 Sec. 5. [289A.081] DIRECT FREE FILING OF INDIVIDUAL RETURNS.
5.21 (a) The commissioner must establish an electronic filing system through which taxpayers
5.22may directly file an electronic individual income tax return free of charge. The commissioner
5.23may contract with a software vendor to develop the filing system required under this section,
5.24but the vendor must not offer paid tax preparation services for Minnesota individual income
5.25taxpayers for tax years that the system is active, and the filing system must be made available
5.26on the Department of Revenue website.
5.27 (b) To the extent feasible, the commissioner must coordinate the state filing system
5.28under this section with any direct file systems established for filing federal tax returns.
5.29 (c) For taxable years beginning after December 31, 2025, the filing system established
5.30under this section must include the ability to file a sufficient number of tax forms that the
5.31commissioner estimates at least 70 percent of resident individual income tax returns could
5.32be filed using the system.
5Article 1 Sec. 5.
REVISOR EAP/VJ 25-0403002/20/25 6.1 EFFECTIVE DATE.This section is effective the day following final enactment.
6.2 Sec. 6. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
6.3to read:
6.4 Subd. 36.Discharges of indebtedness; coerced debt.The amount of discharge of
6.5indebtedness awarded to a claimant under section 332.74, subdivision 3, is a subtraction.
6.6 EFFECTIVE DATE.This section is effective for taxable years beginning after December
6.731, 2024.
6.8 Sec. 7. Minnesota Statutes 2024, section 290.06, subdivision 23, is amended to read:
6.9 Subd. 23.Refund of contributions to political parties and candidates.(a) A taxpayer
6.10may claim a refund equal to the amount of the taxpayer's contributions made in the calendar
6.11year to candidates and to a political party. The maximum total refund per calendar year for
6.12an individual must not exceed $75 and for a married couple, filing jointly, must not exceed
6.13$150. The commissioner must not issue a refund, whether in one payment or in aggregate,
6.14to a taxpayer that exceeds the maximum refund amounts specified in this subdivision. A
6.15refund of a contribution is allowed only if the taxpayer files:
6.16 (1) a form required by the commissioner and attaches to the form a copy of an official
6.17refund receipt form issued by the candidate or party and signed by the candidate, the treasurer
6.18of the candidate's principal campaign committee, or the chair or treasurer of the party unit,
6.19after the contribution was received. The receipt forms must be numbered, and the data on
6.20the receipt that are not public must be made available to the campaign finance and public
6.21disclosure board upon its request; or
6.22 (2) a claim using the electronic filing system authorized in paragraph (i).
6.23The form or claim must include one or more unique receipt validation numbers from receipts
6.24issued pursuant to section 10A.322, subdivision 4.
6.25 (b) A claim must be filed with the commissioner no sooner than January 1 of the calendar
6.26year in which the contribution was made and no later than April 15 of the calendar year
6.27following the calendar year in which the contribution was made. A taxpayer may file only
6.28one claim per calendar year. A claim must be for a minimum of $10. Amounts paid by the
6.29commissioner after June 15 of the calendar year following the calendar year in which the
6.30contribution was made must include interest at the rate specified in section 270C.405.
6.31 (b) (c) No refund is allowed under this subdivision for a contribution to a candidate
6.32unless the candidate:
6Article 1 Sec. 7.
REVISOR EAP/VJ 25-0403002/20/25 7.1 (1) has signed an agreement to limit campaign expenditures as provided in section
7.210A.322;
7.3 (2) is seeking an office for which voluntary spending limits are specified in section
7.410A.25; and
7.5 (3) has designated a principal campaign committee.
7.6 This subdivision does not limit the campaign expenditures of a candidate who does not
7.7sign an agreement but accepts a contribution for which the contributor improperly claims
7.8a refund.
7.9 (c) (d) For purposes of this subdivision, "political party" means a major political party
7.10as defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion
7.11on the income tax or property tax refund form under section 10A.31, subdivision 3a.
7.12 A "major party" or "minor party" includes the aggregate of that party's organization
7.13within each house of the legislature, the state party organization, and the party organization
7.14within congressional districts, counties, legislative districts, municipalities, and precincts.
7.15 "Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a
7.16candidate for judicial office.
7.17 "Contribution" means a gift of money.
7.18 (d) (e) The commissioner shall make copies of the form available to the public and
7.19candidates upon request.
7.20 (e) (f) The following data collected or maintained by the commissioner under this
7.21subdivision are private: the identities of individuals claiming a refund, the identities of
7.22candidates to whom those individuals have made contributions, and the amount of each
7.23contribution.
7.24 (f) (g) The commissioner shall report to the campaign finance and public disclosure
7.25board by each August 1 a summary showing the total number and aggregate amount of
7.26political contribution refunds made on behalf of each candidate and each political party.
7.27These data are public.
7.28 (g) (h) The amount necessary to pay claims for the refund provided in this section is
7.29appropriated from the general fund to the commissioner of revenue.
7.30 (h) For a taxpayer who files a claim for refund via the Internet or other electronic means,
7.31the commissioner may accept the number on the official receipt as documentation that a
7Article 1 Sec. 7.
REVISOR EAP/VJ 25-0403002/20/25 8.1contribution was made rather than the actual receipt as required by paragraph (a) (i) The
8.2commissioner must establish an electronic filing system by which refunds are claimed.
8.3 EFFECTIVE DATE.This section is effective for contributions made after December
8.431, 2026.
8.5 Sec. 8. Minnesota Statutes 2024, section 290.0661, subdivision 1, is amended to read:
8.6 Subdivision 1.Definitions.For the purposes of this section, "qualifying child" has the
8.7meaning given in section 32(c) of the Internal Revenue Code, except:
8.8 (1) excluding individuals who attained the age of 18 19 or greater in the taxable year;
8.9and
8.10 (2) section 32(m) of the Internal Revenue Code does not apply.
8.11 EFFECTIVE DATE.This section is effective for taxable years beginning after December
8.1231, 2024.
8.13 Sec. 9. Minnesota Statutes 2024, section 290.0671, subdivision 1a, is amended to read:
8.14 Subd. 1a.Definitions.For purposes of this section, "qualifying older child" means a
8.15qualifying child, as defined in section 32(c) of the Internal Revenue Code, that attained at
8.16least the age of 18 19 in the taxable year. For the purposes of determining a qualifying older
8.17child, section 32(m) of the Internal Revenue Code does not apply.
8.18 EFFECTIVE DATE.This section is effective for taxable years beginning after December
8.1931, 2024.
8.20 Sec. 10. Minnesota Statutes 2024, section 290.0683, subdivision 3, is amended to read:
8.21 Subd. 3.Allocation.(a) To qualify for the credit, a taxpayer must contribute to the
8.22Minnesota housing tax credit contribution account. A taxpayer may indicate that a
8.23contribution is intended for a specific qualified project. A taxpayer is prohibited from
8.24contributing to certain projects as provided in section 462A.40, subdivision 3.
8.25 (b) The aggregate amount of tax credits allowed to all eligible contributors is limited to
8.26$9,900,000 annually. The allocation for 2025 only is the annual allocation plus the sum of
8.27the unused allocation amounts in 2023 and 2024, if any.
8.28 (c) Within 30 days after a taxpayer contributes to the account, the agency must file with
8.29the contributing taxpayer a credit certificate statement or return any amounts to the taxpayer
8.30as provided in this paragraph. The agency must send a copy of the credit certificate to the
8Article 1 Sec. 10.
REVISOR EAP/VJ 25-0403002/20/25 9.1commissioner. If there are insufficient credits to match the contribution, the agency must
9.2not issue a credit certificate for the amount of the contribution for which there are insufficient
9.3credits, and must return that amount to the taxpayer before issuing any credit certificate.
9.4 (d) The credit certificate must state the dollar amount of the contribution made by the
9.5taxpayer and the date the payment was received by the account, and indicate if the
9.6contribution was intended for a specific qualified project.
9.7 EFFECTIVE DATE.This section is effective for taxable years beginning after December
9.831, 2024.
9.9 Sec. 11. Minnesota Statutes 2024, section 290.92, is amended by adding a subdivision to
9.10read:
9.11 Subd. 32.Nonconformity to certain worker classification rules.For purposes of
9.12employee classification under this section, "Internal Revenue Code" does not include section
9.13530 of Public Law 95-600, as amended.
9.14 EFFECTIVE DATE.This section is effective for taxable years beginning after December
9.1531, 2025.
9.16 Sec. 12. Minnesota Statutes 2024, section 290A.03, subdivision 3, is amended to read:
9.17 Subd. 3.Income.(a) "Income" means the sum of the following:
9.18 (1) federal adjusted gross income as defined in the Internal Revenue Code; and
9.19 (2) the sum of the following amounts to the extent not included in clause (1):
9.20 (i) all nontaxable income;
9.21 (ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
9.22paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
9.23carryover allowed under section 469(b) of the Internal Revenue Code;
9.24 (iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
9.25solvent individual excluded from gross income under section 108(g) of the Internal Revenue
9.26Code;
9.27 (iv) cash public assistance and relief;
9.28 (v) any pension or annuity (including railroad retirement benefits, all payments received
9.29under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
9.30which was not exclusively funded by the claimant or spouse, or which was funded exclusively
9Article 1 Sec. 12.
REVISOR EAP/VJ 25-0403002/20/25 10.1by the claimant or spouse and which funding payments were excluded from federal adjusted
10.2gross income in the years when the payments were made;
10.3 (vi) interest received from the federal or a state government or any instrumentality or
10.4political subdivision thereof;
10.5 (vii) workers' compensation;
10.6 (viii) nontaxable strike benefits;
10.7 (ix) the gross amounts of payments received in the nature of disability income or sick
10.8pay as a result of accident, sickness, or other disability, whether funded through insurance
10.9or otherwise;
10.10 (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
10.111986, as amended through December 31, 1995;
10.12 (xi) contributions made by the claimant to an individual retirement account, including
10.13a qualified voluntary employee contribution; simplified employee pension plan;
10.14self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
10.15the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
10.16Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
10.17the claimant and spouse;
10.18 (xii) to the extent not included in federal adjusted gross income, distributions received
10.19by the claimant or spouse from a traditional or Roth style retirement account or plan;
10.20 (xiii) nontaxable scholarship or fellowship grants;
10.21 (xiv) alimony received to the extent not included in the recipient's income;
10.22 (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
10.23Code;
10.24 (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
10.25Code; and
10.26 (xvii) the amount deducted for certain expenses of elementary and secondary school
10.27teachers under section 62(a)(2)(D) of the Internal Revenue Code.
10.28 In the case of an individual who files an income tax return on a fiscal year basis, the
10.29term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
10.30the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
10.31by the amount of a net operating loss carryback or carryforward or a capital loss carryback
10.32or carryforward allowed for the year.
10Article 1 Sec. 12.
REVISOR EAP/VJ 25-0403002/20/25 11.1 (b) "Income" does not include:
11.2 (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
11.3 (2) amounts of any pension or annuity which was exclusively funded by the claimant
11.4or spouse and which funding payments were not excluded from federal adjusted gross
11.5income in the years when the payments were made;
11.6 (3) to the extent included in federal adjusted gross income, amounts contributed by the
11.7claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
11.8the retirement base amount reduced by the amount of contributions excluded from federal
11.9adjusted gross income, but not less than zero;
11.10 (4) surplus food or other relief in kind supplied by a governmental agency;
11.11 (5) relief granted under this chapter;
11.12 (6) child support payments received under a temporary or final decree of dissolution or
11.13legal separation;
11.14 (7) restitution payments received by eligible individuals and excludable interest as
11.15defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
11.16Public Law 107-16;
11.17 (8) alimony paid; or
11.18 (9) veterans disability compensation paid under title 38 of the United States Code; or
11.19 (10) to the extent included in federal adjusted gross income, the amount of discharge of
11.20indebtedness awarded to the claimant under section 332.74, subdivision 3.
11.21 (c) The sum of the following amounts may be subtracted from income:
11.22 (1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
11.23 (2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
11.24 (3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
11.25 (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
11.26 (5) for the claimant's fifth dependent, the exemption amount; and
11.27 (6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
11.28before December 31 of the year for which the taxes were levied, the exemption amount.
11.29 (d) For purposes of this subdivision, the following terms have the meanings given:
11Article 1 Sec. 12.
REVISOR EAP/VJ 25-0403002/20/25 12.1 (1) "exemption amount" means the exemption amount under section 290.0121,
12.2subdivision 1, paragraph (b), for the taxable year for which the income is reported;
12.3 (2) "retirement base amount" means the deductible amount for the taxable year for the
12.4claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
12.5inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
12.6to whether the claimant or spouse claimed a deduction; and
12.7 (3) "traditional or Roth style retirement account or plan" means retirement plans under
12.8sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
12.9 EFFECTIVE DATE.This section is effective for property taxes payable in 2026 and
12.10thereafter.
12.11Sec. 13. APPROPRIATION; POLITICAL CONTRIBUTION REFUND
12.12ELECTRONIC FILING SYSTEM.
12.13 $147,000 in fiscal year 2026 and $59,000 in fiscal year 2027 are appropriated from the
12.14general fund to the commissioner of revenue to establish and implement an electronic filing
12.15system for political contribution refund claims.
12.16Sec. 14. APPROPRIATION; DIRECT FREE FILING SYSTEM.
12.17 $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the general
12.18fund to the commissioner of revenue for the free filing system under Minnesota Statutes,
12.19section 289A.081.
12.20Sec. 15. APPROPRIATION; CORPORATE FRANCHISE TAX INFORMATION
12.21DISCLOSURE.
12.22 $480,000 in fiscal year 2026 and $198,000 in fiscal year 2027 are appropriated from the
12.23general fund to the commissioner of revenue to administer the publication of corporate
12.24franchise tax information required under Minnesota Statutes, section 270B.163.
12.25 ARTICLE 2
12.26 PROPERTY TAXES AND LOCAL GOVERNMENT AIDS
12.27Section 1. Minnesota Statutes 2024, section 272.02, subdivision 7, is amended to read:
12.28 Subd. 7.Institutions of public charity.(a) Institutions of purely public charity that are
12.29exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code
12Article 2 Section 1.
REVISOR EAP/VJ 25-0403002/20/25 13.1are exempt if they meet the requirements of this subdivision. In determining whether real
13.2property is exempt under this subdivision, the following factors must be considered:
13.3 (1) whether the stated purpose of the undertaking is to be helpful to others without
13.4immediate expectation of material reward;
13.5 (2) whether the institution of public charity is supported by material donations, gifts, or
13.6government grants for services to the public in whole or in part;
13.7 (3) whether a material number of the recipients of the charity receive benefits or services
13.8at reduced or no cost, or whether the organization provides services to the public that alleviate
13.9burdens or responsibilities that would otherwise be borne by the government;
13.10 (4) whether the income received, including material gifts and donations, produces a
13.11profit to the charitable institution that is not distributed to private interests;
13.12 (5) whether the beneficiaries of the charity are restricted or unrestricted, and, if restricted,
13.13whether the class of persons to whom the charity is made available is one having a reasonable
13.14relationship to the charitable objectives; and
13.15 (6) whether dividends, in form or substance, or assets upon dissolution, are not available
13.16to private interests.
13.17 A charitable organization must satisfy the factors in clauses (1) to (6) for its property to
13.18be exempt under this subdivision, unless there is a reasonable justification for failing to
13.19meet the factors in clause (2), (3), or (5), and the organization provides to the assessor the
13.20factual basis for that justification. If there is reasonable justification for failing to meet the
13.21factors in clause (2), (3), or (5), an organization is a purely public charity under this
13.22subdivision without meeting those factors. After an exemption is properly granted under
13.23this subdivision, it will remain in effect unless there is a material change in facts.
13.24 (b) For purposes of this subdivision, a grant is a written instrument or electronic document
13.25defining a legal relationship between a granting agency and a grantee when the principal
13.26purpose of the relationship is to transfer cash or something of value to the grantee to support
13.27a public purpose authorized by law in a general manner instead of acquiring by professional
13.28or technical contract, purchase, lease, or barter property or services for the direct benefit or
13.29use of the granting agency.
13.30 (c) Rental housing property does not qualify for an exemption under this subdivision
13.31unless: (1) its use is in furtherance of the tax-exempt charitable purpose of the organization;
13.32and (2) its use does not further the tax-exempt charitable purpose of the organization solely
13Article 2 Section 1.
REVISOR EAP/VJ 25-0403002/20/25 14.1by providing rental housing to persons or families on the basis of the income characteristics
14.2of those persons or families.
14.3 (c) (d) In determining whether rental housing property qualifies for exemption under
14.4this subdivision, the following are not gifts or donations to the owner of the rental housing:
14.5 (1) rent assistance provided by the government to or on behalf of tenants; and
14.6 (2) financing assistance or tax credits provided by the government to the owner on
14.7condition that specific units or a specific quantity of units be set aside for persons or families
14.8with certain income characteristics.
14.9 EFFECTIVE DATE.This section is effective for property taxes payable in 2026 and
14.10thereafter.
14.11Sec. 2. Minnesota Statutes 2024, section 272.02, subdivision 19, is amended to read:
14.12 Subd. 19.Property used to distribute electricity to farmers.Electric power distribution
14.13lines and their attachments and appurtenances systems, not including substations, or
14.14transmission or generation equipment, that are used primarily for supplying electricity to
14.15farmers at retail, are exempt.
14.16 EFFECTIVE DATE.This section is effective for assessment year 2025 and thereafter.
14.17Sec. 3. Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
14.18read:
14.19 Subd. 106.Certain property owned by an Indian Tribe.(a) Property is exempt that:
14.20 (1) was classified as class 2b under section 273.13, subdivision 23, for taxes payable in
14.212024;
14.22 (2) is located within a county with a population greater than 5,580 but less than 5,620
14.23according to the 2020 federal census;
14.24 (3) is located in an unorganized territory with a population less than 800 according to
14.25the 2020 federal census; and
14.26 (4) was on January 2, 2023, and is for the current assessment, owned by a federally
14.27recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota.
14.28 (b) The exemption under this subdivision does not apply if the use of the property
14.29receiving the exemption changes from the use of the property in assessment year 2025.
14.30 EFFECTIVE DATE.This section is effective beginning with assessment year 2026.
14Article 2 Sec. 3.
REVISOR EAP/VJ 25-0403002/20/25 15.1 Sec. 4. Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
15.2read:
15.3 Subd. 107.Certain property owned by an Indian Tribe.(a) Property is exempt that:
15.4 (1) was classified as class 3a under section 273.13, subdivision 24, for taxes payable in
15.52024;
15.6 (2) is located in a city of the first class with a population greater than 400,000 as of the
15.72020 federal census;
15.8 (3) was on January 2, 2023, and is for the current assessment, owned by a federally
15.9recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota;
15.10and
15.11 (4) is used exclusively for Tribal purposes or institutions of purely public charity as
15.12defined in subdivision 7.
15.13 (b) Property that qualifies for the exemption under this subdivision is limited to one
15.14parcel that does not exceed 40,000 square feet. Property used for single-family housing,
15.15market-rate apartments, agriculture, or forestry does not qualify for this exemption.
15.16 EFFECTIVE DATE.This section is effective beginning with assessment year 2026.
15.17Sec. 5. Minnesota Statutes 2024, section 273.13, subdivision 25, is amended to read:
15.18 Subd. 25.Class 4.(a) Class 4a is residential real estate containing four or more units
15.19and used or held for use by the owner or by the tenants or lessees of the owner as a residence
15.20for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
15.21also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
15.22under section 272.02, and contiguous property used for hospital purposes, without regard
15.23to whether the property has been platted or subdivided. The market value of class 4a property
15.24has a classification rate of 1.25 percent.
15.25 (b) Class 4b includes:
15.26 (1) residential real estate containing less than four units, including property rented as a
15.27short-term rental property for more than 14 days in the preceding year, that does not qualify
15.28as class 4bb, other than seasonal residential recreational property;
15.29 (2) manufactured homes not classified under any other provision;
15.30 (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
15.31classified under subdivision 23, paragraph (b) containing two or three units; and
15Article 2 Sec. 5.
REVISOR EAP/VJ 25-0403002/20/25 16.1 (4) unimproved property that is classified residential as determined under subdivision
16.233.
16.3 For the purposes of this paragraph, "short-term rental property" means nonhomestead
16.4residential real estate rented for periods of less than 30 consecutive days.
16.5 The market value of class 4b property has a classification rate of 1.25 percent.
16.6 (c) Class 4bb includes:
16.7 (1) nonhomestead residential real estate containing one unit, other than seasonal
16.8residential recreational property;
16.9 (2) a single family dwelling, garage, and surrounding one acre of property on a
16.10nonhomestead farm classified under subdivision 23, paragraph (b); and
16.11 (3) a condominium-type storage unit having an individual property identification number
16.12that is not used for a commercial purpose.
16.13 Class 4bb property has the same classification rates as class 1a property under subdivision
16.1422.
16.15 Property that has been classified as seasonal residential recreational property at any time
16.16during which it has been owned by the current owner or spouse of the current owner does
16.17not qualify for class 4bb.
16.18 (d) Class 4c property includes:
16.19 (1) except as provided in subdivision 22, paragraph (c), real and personal property
16.20devoted to commercial temporary and seasonal residential occupancy for recreation purposes,
16.21for not more than 250 days in the year preceding the year of assessment. For purposes of
16.22this clause, property is devoted to a commercial purpose on a specific day if any portion of
16.23the property is used for residential occupancy, and a fee is charged for residential occupancy.
16.24Class 4c property under this clause must contain three or more rental units. A "rental unit"
16.25is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
16.26equipped with water and electrical hookups for recreational vehicles. A camping pad offered
16.27for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c
16.28under this clause regardless of the term of the rental agreement, as long as the use of the
16.29camping pad does not exceed 250 days. In order for a property to be classified under this
16.30clause, either (i) the business located on the property must provide recreational activities,
16.31at least 40 percent of the annual gross lodging receipts related to the property must be from
16.32business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid
16.33bookings by lodging guests during the year must be for periods of at least two consecutive
16Article 2 Sec. 5.
REVISOR EAP/VJ 25-0403002/20/25 17.1nights; or (B) at least 20 percent of the annual gross receipts must be from charges for
17.2providing recreational activities, or (ii) the business must contain 20 or fewer rental units,
17.3and must be located in a township or a city with a population of 2,500 or less located outside
17.4the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion
17.5of a state trail administered by the Department of Natural Resources. For purposes of item
17.6(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c
17.7property also includes commercial use real property used exclusively for recreational
17.8purposes in conjunction with other class 4c property classified under this clause and devoted
17.9to temporary and seasonal residential occupancy for recreational purposes, up to a total of
17.10two acres, provided the property is not devoted to commercial recreational use for more
17.11than 250 days in the year preceding the year of assessment and is located within two miles
17.12of the class 4c property with which it is used. In order for a property to qualify for
17.13classification under this clause, the owner must submit a declaration to the assessor
17.14designating the cabins or units occupied for 250 days or less in the year preceding the year
17.15of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
17.16share of the land on which they are located must be designated class 4c under this clause
17.17as otherwise provided. The remainder of the cabins or units and a proportionate share of
17.18the land on which they are located will be designated as class 3a. The owner of property
17.19desiring designation as class 4c property under this clause must provide guest registers or
17.20other records demonstrating that the units for which class 4c designation is sought were not
17.21occupied for more than 250 days in the year preceding the assessment if so requested. The
17.22portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
17.23or meeting room, and (5) other nonresidential facility operated on a commercial basis not
17.24directly related to temporary and seasonal residential occupancy for recreation purposes
17.25does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
17.26means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
17.27ski equipment; providing marina services, launch services, or guide services; or selling bait
17.28and fishing tackle;
17.29 (2) qualified property used as a golf course if:
17.30 (i) it is open to the public on a daily fee basis. It may charge membership fees or dues,
17.31but a membership fee may not be required in order to use the property for golfing, and its
17.32green fees for golfing must be comparable to green fees typically charged by municipal
17.33courses; and
17.34 (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
17Article 2 Sec. 5.
REVISOR EAP/VJ 25-0403002/20/25 18.1 A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with
18.2the golf course is classified as class 3a property;
18.3 (3) real property up to a maximum of three acres of land owned and used by a nonprofit
18.4community service oriented organization and not used for residential purposes on either a
18.5temporary or permanent basis, provided that:
18.6 (i) the property is not used for a revenue-producing activity for more than six days in
18.7the calendar year preceding the year of assessment; or
18.8 (ii) the organization makes annual charitable contributions and donations at least equal
18.9to the property's previous year's property taxes and the property is allowed to be used for
18.10public and community meetings or events for no charge, as appropriate to the size of the
18.11facility.
18.12 For purposes of this clause:
18.13 (A) "charitable contributions and donations" has the same meaning as lawful gambling
18.14purposes under section 349.12, subdivision 25, excluding those purposes relating to the
18.15payment of taxes, assessments, fees, auditing costs, and utility payments;
18.16 (B) "property taxes" excludes the state general tax;
18.17 (C) a "nonprofit community service oriented organization" means any corporation,
18.18society, association, foundation, or institution organized and operated exclusively for
18.19charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
18.20federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
18.21Revenue Code; and
18.22 (D) "revenue-producing activities" shall include but not be limited to property or that
18.23portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
18.24liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
18.25alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
18.26insurance business, or office or other space leased or rented to a lessee who conducts a
18.27for-profit enterprise on the premises.
18.28 Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The
18.29use of the property for social events open exclusively to members and their guests for periods
18.30of less than 24 hours, when an admission is not charged nor any revenues are received by
18.31the organization shall not be considered a revenue-producing activity.
18.32 The organization shall maintain records of its charitable contributions and donations
18.33and of public meetings and events held on the property and make them available upon
18Article 2 Sec. 5.
REVISOR EAP/VJ 25-0403002/20/25 19.1request any time to the assessor to ensure eligibility. An organization meeting the requirement
19.2under item (ii) must file an application by May 1 with the assessor for eligibility for the
19.3current year's assessment. The commissioner shall prescribe a uniform application form
19.4and instructions;
19.5 (4) postsecondary student housing of not more than one acre of land that is owned by a
19.6nonprofit corporation organized under chapter 317A and is used exclusively by a student
19.7cooperative, sorority, or fraternity for on-campus housing or housing located within two
19.8miles of the border of a college campus;
19.9 (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
19.10manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as
19.11defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision
19.123a, and (iii) class I manufactured home parks as defined in section 327C.015, subdivision
19.132;
19.14 (6) real property that is actively and exclusively devoted to indoor fitness, health, social,
19.15recreational, and related uses, is owned and operated by a not-for-profit corporation, and is
19.16located within the metropolitan area as defined in section 473.121, subdivision 2;
19.17 (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
19.18section 272.01, subdivision 2, and the land on which it is located, provided that:
19.19 (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
19.20Airports Commission, or group thereof; and
19.21 (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased
19.22premise, prohibits commercial activity performed at the hangar.
19.23 If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be
19.24filed by the new owner with the assessor of the county where the property is located within
19.2560 days of the sale;
19.26 (8) a privately owned noncommercial aircraft storage hangar not exempt under section
19.27272.01, subdivision 2, and the land on which it is located, provided that:
19.28 (i) the land abuts a public airport; and
19.29 (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement
19.30restricting the use of the premises, prohibiting commercial use or activity performed at the
19.31hangar; and
19Article 2 Sec. 5.
REVISOR EAP/VJ 25-0403002/20/25 20.1 (9) residential real estate, a portion of which is used by the owner for homestead purposes,
20.2and that is also a place of lodging, if all of the following criteria are met:
20.3 (i) rooms are provided for rent to transient guests that generally stay for periods of 14
20.4or fewer days;
20.5 (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
20.6the basic room rate;
20.7 (iii) meals are not provided to the general public except for special events on fewer than
20.8seven days in the calendar year preceding the year of the assessment; and
20.9 (iv) the owner is the operator of the property.
20.10 The market value subject to the 4c classification under this clause is limited to five rental
20.11units. Any rental units on the property in excess of five, must be valued and assessed as
20.12class 3a. The portion of the property used for purposes of a homestead by the owner must
20.13be classified as class 1a property under subdivision 22;
20.14 (10) real property up to a maximum of three acres and operated as a restaurant as defined
20.15under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under
20.16section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to
20.17commercial purposes for not more than 250 consecutive days, or receives at least 60 percent
20.18of its annual gross receipts from business conducted during four consecutive months. Gross
20.19receipts from the sale of alcoholic beverages must be included in determining the property's
20.20qualification under item (ii). The property's primary business must be as a restaurant and
20.21not as a bar. Gross receipts from gift shop sales located on the premises must be excluded.
20.22Owners of real property desiring 4c classification under this clause must submit an annual
20.23declaration to the assessor by February 1 of the current assessment year, based on the
20.24property's relevant information for the preceding assessment year;
20.25 (11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as
20.26a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public
20.27and devoted to recreational use for marina services. The marina owner must annually provide
20.28evidence to the assessor that it provides services, including lake or river access to the public
20.29by means of an access ramp or other facility that is either located on the property of the
20.30marina or at a publicly owned site that abuts the property of the marina. No more than 800
20.31feet of lakeshore may be included in this classification. Buildings used in conjunction with
20.32a marina for marina services, including but not limited to buildings used to provide food
20.33and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified
20.34as class 3a property; and
20Article 2 Sec. 5.
REVISOR EAP/VJ 25-0403002/20/25 21.1 (12) real and personal property devoted to noncommercial temporary and seasonal
21.2residential occupancy for recreation purposes.
21.3 Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
21.4each parcel of noncommercial seasonal residential recreational property under clause (12)
21.5has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
21.6under clause (5), item (i), have the same classification rate as class 4b property, the market
21.7value of manufactured home parks assessed under clause (5), item (ii), have a classification
21.8rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by
21.9shareholders in the cooperative corporation or association and a classification rate of one
21.10percent if 50 percent or less of the lots are so occupied, and class I manufactured home
21.11parks as defined in section 327C.015, subdivision 2, have a classification rate of 1.0 percent,
21.12(iii) commercial-use seasonal residential recreational property and marina recreational land
21.13as described in clause (11), has a classification rate of one percent for the first $500,000 of
21.14market value, and 1.25 percent for the remaining market value, (iv) the market value of
21.15property described in clause (4) has a classification rate of one percent, (v) the market value
21.16of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent,
21.17(vi) that portion of the market value of property in clause (9) qualifying for class 4c property
21.18has a classification rate of 1.25 percent, and (vii) property qualifying for classification under
21.19clause (3) that is owned or operated by a congressionally chartered veterans organization
21.20has a classification rate of one percent. The commissioner of veterans affairs must provide
21.21a list of congressionally chartered veterans organizations to the commissioner of revenue
21.22by June 30, 2017, and by January 1, 2018, and each year thereafter.
21.23 (e) Class 4d property includes:
21.24 (1) qualifying low-income rental housing certified to the assessor by the Housing Finance
21.25Agency under section 273.128, subdivision 3. If only a portion of the units in the building
21.26qualify as low-income rental housing units as certified under section 273.128, subdivision
21.273, only the proportion of qualifying units to the total number of units in the building qualify
21.28for class 4d(1). The remaining portion of the building shall be classified by the assessor
21.29based upon its use. Class 4d(1) also includes the same proportion of land as the qualifying
21.30low-income rental housing units are to the total units in the building. For all properties
21.31qualifying as class 4d(1), the market value determined by the assessor must be based on the
21.32normal approach to value using normal unrestricted rents; and
21.33 (2) a unit that is owned by the occupant and used as a homestead by the occupant, and
21.34otherwise meets all the requirements for community land trust property under section 273.11,
21.35subdivision 12, provided that by December 31 of each assessment year, the community land
21Article 2 Sec. 5.
REVISOR EAP/VJ 25-0403002/20/25 22.1trust certifies to the assessor that (i) the community land trust owns the real property on
22.2which the unit is located, and (ii) the unit owner is a member in good standing of the
22.3community land trust. For all units qualifying as class 4d(2), the market value determined
22.4by the assessor must be based on the normal approach to value without regard to any
22.5restrictions that apply because the unit is a community land trust property.
22.6 (f) Class 4d(1) property has a classification rate of 0.25 percent. Class 4d(2) property
22.7has a classification rate of 0.75 percent.
22.8 EFFECTIVE DATE.This section is effective beginning with assessment year 2025.
22.9 Sec. 6. [273.1389] ADVANCE HOMESTEAD CREDIT FOR SENIORS.
22.10 Subdivision 1.Eligibility.Homestead property is eligible to receive the advance
22.11homestead credit for seniors under this section if it is owned by an eligible senior claimant
22.12who received homestead treatment on the property in the prior taxes payable year. For the
22.13purposes of this section, "eligible senior claimant" means a claimant who has submitted an
22.14application and has been determined eligible under section 290A.071.
22.15 Subd. 2.Credit amount.For each qualifying property, the amount of the advance
22.16homestead credit for seniors is equal to 50 percent of the amount of the homestead credit
22.17refund the property owner received in the previous year.
22.18 Subd. 3.Certification.No later than January 2 of the year for which an eligible senior
22.19claimant elected to receive the advance homestead credit for seniors under this section, the
22.20commissioner of revenue must calculate and certify to each county auditor credit amounts
22.21under this section. The county auditor must apply the credit to each qualifying property's
22.22first half payment. If a property's credit amount under subdivision 2 exceeds the first half
22.23payment amount after all other applicable credits, the auditor must reduce the advance
22.24homestead credit for seniors so that the first half payment amount is $0. No later than July
22.251 of the taxes payable year in which the credit is applied, the county auditor must certify
22.26any reductions under this subdivision to the commissioner of revenue under section 270C.85,
22.27subdivision 2. The commissioner shall review the certifications for accuracy and may make
22.28any changes the commissioner deems necessary or return the certification to the county
22.29auditor for correction.
22.30 Subd. 4.Payment.(a) The commissioner of revenue shall reimburse each local taxing
22.31jurisdiction, other than school districts, for the tax reductions granted under this section in
22.32one installment on October 31 of the taxes payable year for which the reductions are granted,
22Article 2 Sec. 6.
REVISOR EAP/VJ 25-0403002/20/25 23.1including in each payment any prior year adjustments. The reimbursements related to tax
23.2increments shall be issued in one installment each year on December 26.
23.3 (b) The commissioner of revenue shall certify the total of the tax reductions granted
23.4under this section for each taxes payable year within each school district to the commissioner
23.5of education. The commissioner of education shall pay the reimbursement amounts to each
23.6school district as provided in section 273.1392.
23.7 Subd. 5.Appropriation.An amount sufficient to make the payments required by this
23.8section to taxing jurisdictions other than school districts is annually appropriated from the
23.9general fund to the commissioner of revenue. An amount sufficient to make the payments
23.10required by this section for school districts is annually appropriated from the general fund
23.11to the commissioner of education.
23.12 EFFECTIVE DATE.This section is effective beginning with property taxes payable
23.13in 2027.
23.14Sec. 7. Minnesota Statutes 2024, section 273.1392, is amended to read:
23.15 273.1392 PAYMENT; SCHOOL DISTRICTS.
23.16 The amounts of bovine tuberculosis credit reimbursements under section 273.113;
23.17conservation tax credits under section 273.119; disaster or emergency reimbursement under
23.18sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387;
23.19the advance homestead credit for seniors under section 273.1389; aids and credits under
23.20section 273.1398; enterprise zone property credit payments under section 469.171;
23.21metropolitan agricultural preserve reduction under section 473H.10; and electric generation
23.22transition aid under section 477A.24 for school districts, shall be certified to the Department
23.23of Education by the Department of Revenue. The amounts so certified shall be paid according
23.24to section 127A.45, subdivisions 9, 10, and 13.
23.25 EFFECTIVE DATE.This section is effective beginning with property taxes payable
23.26in 2027.
23.27Sec. 8. Minnesota Statutes 2024, section 273.1393, is amended to read:
23.28 273.1393 COMPUTATION OF NET PROPERTY TAXES.
23.29 Notwithstanding any other provisions to the contrary, "net" property taxes are determined
23.30by subtracting the credits in the order listed from the gross tax:
23.31 (1) disaster credit as provided in sections 273.1231 to 273.1235;
23Article 2 Sec. 8.
REVISOR EAP/VJ 25-0403002/20/25 24.1 (2) powerline credit as provided in section 273.42;
24.2 (3) agricultural preserves credit as provided in section 473H.10;
24.3 (4) enterprise zone credit as provided in section 469.171;
24.4 (5) disparity reduction credit;
24.5 (6) conservation tax credit as provided in section 273.119;
24.6 (7) the school bond credit as provided in section 273.1387;
24.7 (8) agricultural credit as provided in section 273.1384;
24.8 (9) taconite homestead credit as provided in section 273.135;
24.9 (10) supplemental homestead credit as provided in section 273.1391; and
24.10 (11) the bovine tuberculosis zone credit, as provided in section 273.113.; and
24.11 (12) the advance homestead credit for seniors under section 273.1389.
24.12 The combination of all property tax credits must not exceed the gross tax amount.
24.13 EFFECTIVE DATE.This section is effective beginning with property taxes payable
24.14in 2027.
24.15Sec. 9. Minnesota Statutes 2024, section 273.38, is amended to read:
24.16 273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.
24.17 The distribution lines and the attachments and appurtenances thereto systems, not
24.18including substations, or transmission or generation equipment of cooperative associations
24.19organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof
24.20and supplemental thereto, and engaged in the electrical heat, light and power business, upon
24.21a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections
24.22273.40 and 273.41.
24.23 EFFECTIVE DATE.This section is effective for assessment year 2025 and thereafter.
24.24Sec. 10. Minnesota Statutes 2024, section 273.41, is amended to read:
24.25 273.41 AMOUNT OF TAX; DISTRIBUTION.
24.26 There is hereby imposed upon each such cooperative association on December 31 of
24.27each year a tax of $10 for each 100 members, or fraction thereof, of such association. The
24.28tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
24.29distribution lines and the attachments and appurtenances thereto of such associations that
24Article 2 Sec. 10.
REVISOR EAP/VJ 25-0403002/20/25 25.1part of the association's distribution system, not including substations, or transmission or
25.2generation equipment, located in rural areas. The tax shall be payable on or before March
25.31 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion
25.4thereof, is not paid within the time herein specified for the payment thereof, there shall be
25.5added thereto a specific penalty equal to ten percent of the amount so remaining unpaid.
25.6Such penalty shall be collected as part of said tax, and the amount of said tax not timely
25.7paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
25.8from the time such tax should have been paid until paid. The commissioner shall deposit
25.9the amount so received in the general fund of the state treasury.
25.10 EFFECTIVE DATE.This section is effective for assessment year 2025 and thereafter.
25.11Sec. 11. Minnesota Statutes 2024, section 275.065, subdivision 3, is amended to read:
25.12 Subd. 3.Notice of proposed property taxes.(a) The county auditor shall prepare and
25.13the county treasurer shall deliver after November 10 and on or before November 24 each
25.14year, by first class mail to each taxpayer at the address listed on the county's current year's
25.15assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
25.16the treasurer may send the notice in electronic form or by electronic mail instead of on paper
25.17or by ordinary mail.
25.18 (b) The commissioner of revenue shall prescribe the form of the notice.
25.19 (c) The notice must inform taxpayers that it contains the amount of property taxes each
25.20taxing authority proposes to collect for taxes payable the following year. In the case of a
25.21town, or in the case of the state general tax, the final tax amount will be its proposed tax.
25.22The notice must clearly state for each city that has a population over 500, county, school
25.23district, regional library authority established under section 134.201, metropolitan taxing
25.24districts as defined in paragraph (i), and fire protection and emergency medical services
25.25special taxing districts established under section 144F.01, the time and place of a meeting
25.26for each taxing authority in which the budget and levy will be discussed and public input
25.27allowed, prior to the final budget and levy determination. The taxing authorities must provide
25.28the county auditor with the information to be included in the notice on or before the time it
25.29certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
25.30meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
25.31must provide a website address and a telephone number for the taxing authority that taxpayers
25.32may call if they have questions related to the notice and an address where comments will
25.33be received by mail, except that no notice required under this section shall be interpreted
25.34as requiring the printing of a personal telephone number or address as the contact information
25Article 2 Sec. 11.
REVISOR EAP/VJ 25-0403002/20/25 26.1for a taxing authority. If a taxing authority does not maintain a website or public offices
26.2where telephone calls can be received by the authority, the authority may inform the county
26.3of the lack of a public website or telephone number and the county shall not list a website
26.4or telephone number for that taxing authority.
26.5 (d) The notice must state for each parcel:
26.6 (1) the market value of the property as determined under section 273.11, and used for
26.7computing property taxes payable in the following year and for taxes payable in the current
26.8year as each appears in the records of the county assessor on November 1 of the current
26.9year; and, in the case of residential property, whether the property is classified as homestead
26.10or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
26.11values apply and that the values are final values;
26.12 (2) the items listed below, shown separately by county, city or town, and state general
26.13tax, agricultural homestead credit under section 273.1384, school building bond agricultural
26.14credit under section 273.1387, the advance homestead credit for seniors under section
26.15273.1389, voter approved school levy, other local school levy, and the sum of the special
26.16taxing districts, and as a total of all taxing authorities:
26.17 (i) the actual tax for taxes payable in the current year; and
26.18 (ii) the proposed tax amount.
26.19 If the county levy under clause (2) includes an amount for a lake improvement district
26.20as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
26.21must be separately stated from the remaining county levy amount.
26.22 In the case of a town or the state general tax, the final tax shall also be its proposed tax
26.23unless the town changes its levy at a special town meeting under section 365.52. If a school
26.24district has certified under section 126C.17, subdivision 9, that a referendum will be held
26.25in the school district at the November general election, the county auditor must note next
26.26to the school district's proposed amount that a referendum is pending and that, if approved
26.27by the voters, the tax amount may be higher than shown on the notice. In the case of the
26.28city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
26.29from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
26.30the St. Paul Library Agency must be listed separately from the remaining amount of the
26.31city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
26.32listed separately from the remaining amount of the county's levy. In the case of a parcel
26.33where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
26.34applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
26Article 2 Sec. 11.
REVISOR EAP/VJ 25-0403002/20/25 27.1capacity subject to the areawide tax must each be stated separately and not included in the
27.2sum of the special taxing districts; and
27.3 (3) the increase or decrease between the total taxes payable in the current year and the
27.4total proposed taxes, expressed as a percentage.
27.5 For purposes of this section, the amount of the tax on homesteads qualifying under the
27.6senior citizens' property tax deferral program under chapter 290B is the total amount of
27.7property tax before subtraction of the deferred property tax amount.
27.8 (e) The notice must clearly state that the proposed or final taxes do not include the
27.9following:
27.10 (1) special assessments;
27.11 (2) levies approved by the voters after the date the proposed taxes are certified, including
27.12bond referenda and school district levy referenda;
27.13 (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
27.14in November of the levy year as provided under section 275.73;
27.15 (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
27.16after the date the proposed taxes are certified;
27.17 (5) amounts necessary to pay tort judgments against the taxing authority that become
27.18final after the date the proposed taxes are certified; and
27.19 (6) the contamination tax imposed on properties which received market value reductions
27.20for contamination.
27.21 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
27.22county treasurer to deliver the notice as required in this section does not invalidate the
27.23proposed or final tax levy or the taxes payable pursuant to the tax levy.
27.24 (g) If the notice the taxpayer receives under this section lists the property as
27.25nonhomestead, and satisfactory documentation is provided to the county assessor by the
27.26applicable deadline, and the property qualifies for the homestead classification in that
27.27assessment year, the assessor shall reclassify the property to homestead for taxes payable
27.28in the following year.
27.29 (h) In the case of class 4 residential property used as a residence for lease or rental
27.30periods of 30 days or more, the taxpayer must either:
27.31 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
27.32or lessee; or
27Article 2 Sec. 11.
REVISOR EAP/VJ 25-0403002/20/25 28.1 (2) post a copy of the notice in a conspicuous place on the premises of the property.
28.2 The notice must be mailed or posted by the taxpayer by November 27 or within three
28.3days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
28.4of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
28.5notice must be mailed in order to fulfill the requirements of this paragraph.
28.6 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
28.7districts" means the following taxing districts in the seven-county metropolitan area that
28.8levy a property tax for any of the specified purposes listed below:
28.9 (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
28.10473.521, 473.547, or 473.834;
28.11 (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
28.12 (3) Metropolitan Mosquito Control Commission under section 473.711.
28.13 For purposes of this section, any levies made by the regional rail authorities in the county
28.14of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
28.15shall be included with the appropriate county's levy.
28.16 (j) The governing body of a county, city, or school district may, with the consent of the
28.17county board, include supplemental information with the statement of proposed property
28.18taxes about the impact of state aid increases or decreases on property tax increases or
28.19decreases and on the level of services provided in the affected jurisdiction. This supplemental
28.20information may include information for the following year, the current year, and for as
28.21many consecutive preceding years as deemed appropriate by the governing body of the
28.22county, city, or school district. It may include only information regarding:
28.23 (1) the impact of inflation as measured by the implicit price deflator for state and local
28.24government purchases;
28.25 (2) population growth and decline;
28.26 (3) state or federal government action; and
28.27 (4) other financial factors that affect the level of property taxation and local services
28.28that the governing body of the county, city, or school district may deem appropriate to
28.29include.
28.30 The information may be presented using tables, written narrative, and graphic
28.31representations and may contain instruction toward further sources of information or
28.32opportunity for comment.
28Article 2 Sec. 11.
REVISOR EAP/VJ 25-0403002/20/25 29.1 EFFECTIVE DATE.This section is effective beginning with property taxes payable
29.2in 2027.
29.3 Sec. 12. Minnesota Statutes 2024, section 276.04, subdivision 2, is amended to read:
29.4 Subd. 2.Contents of tax statements.(a) The treasurer shall provide for the printing of
29.5the tax statements. The commissioner of revenue shall prescribe the form of the property
29.6tax statement and its contents. The tax statement must not state or imply that property tax
29.7credits are paid by the state of Minnesota. The statement must contain a tabulated statement
29.8of the dollar amount due to each taxing authority and the amount of the state tax from the
29.9parcel of real property for which a particular tax statement is prepared. The dollar amounts
29.10attributable to the county, the state tax, the voter approved school tax, the other local school
29.11tax, the township or municipality, and the total of the metropolitan special taxing districts
29.12as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
29.13amounts due all other special taxing districts, if any, may be aggregated except that any
29.14levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
29.15Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
29.16under the appropriate county's levy. If the county levy under this paragraph includes an
29.17amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
29.18the amount attributable for that purpose must be separately stated from the remaining county
29.19levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
29.20an amount for public library service under section 134.07, the amount attributable for that
29.21purpose may be separated from the remaining county levy amount. The amount of the tax
29.22on homesteads qualifying under the senior citizens' property tax deferral program under
29.23chapter 290B is the total amount of property tax before subtraction of the deferred property
29.24tax amount. The amount of the tax on contamination value imposed under sections 270.91
29.25to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
29.26amount of any special assessments, may be rounded to the nearest even whole dollar. For
29.27purposes of this section whole odd-numbered dollars may be adjusted to the next higher
29.28even-numbered dollar.
29.29 (b) The property tax statements for manufactured homes and sectional structures taxed
29.30as personal property shall contain the same information that is required on the tax statements
29.31for real property.
29.32 (c) Real and personal property tax statements must contain the following information
29.33in the order given in this paragraph. The information must contain the current year tax
29Article 2 Sec. 12.
REVISOR EAP/VJ 25-0403002/20/25 30.1information in the right column with the corresponding information for the previous year
30.2in a column on the left:
30.3 (1) the property's estimated market value under section 273.11, subdivision 1;
30.4 (2) the property's homestead market value exclusion under section 273.13, subdivision
30.535;
30.6 (3) the property's taxable market value under section 272.03, subdivision 15;
30.7 (4) the property's gross tax, before credits;
30.8 (5) for agricultural properties, the credits under sections 273.1384 and 273.1387;
30.9 (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
30.10273.1389; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount
30.11of credit received under section 273.135 must be separately stated and identified as "taconite
30.12tax relief"; and
30.13 (7) the net tax payable in the manner required in paragraph (a).
30.14 (d) If the county uses envelopes for mailing property tax statements and if the county
30.15agrees, a taxing district may include a notice with the property tax statement notifying
30.16taxpayers when the taxing district will begin its budget deliberations for the current year,
30.17and encouraging taxpayers to attend the hearings. If the county allows notices to be included
30.18in the envelope containing the property tax statement, and if more than one taxing district
30.19relative to a given property decides to include a notice with the tax statement, the county
30.20treasurer or auditor must coordinate the process and may combine the information on a
30.21single announcement.
30.22 EFFECTIVE DATE.This section is effective beginning with property taxes payable
30.23in 2027.
30.24Sec. 13. Minnesota Statutes 2024, section 289A.08, subdivision 1, is amended to read:
30.25 Subdivision 1.Generally; individuals.(a) A taxpayer must file a return for each taxable
30.26year the taxpayer is required to file a return under section 6012 of the Internal Revenue
30.27Code or meets the requirements under paragraph (d) to file a return, except that:
30.28 (1) an individual who is not a Minnesota resident for any part of the year is not required
30.29to file a Minnesota income tax return if the individual's gross income derived from Minnesota
30.30sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the
30.31filing requirements for a single individual who is a full year resident of Minnesota;
30Article 2 Sec. 13.
REVISOR EAP/VJ 25-0403002/20/25 31.1 (2) an individual who is a Minnesota resident is not required to file a Minnesota income
31.2tax return if the individual's gross income derived from Minnesota sources as determined
31.3under section 290.17, less the subtractions allowed under section 290.0132, subdivisions
31.412 and 15, is less than the filing requirements for a single individual who is a full-year
31.5resident of Minnesota.
31.6 (b) The decedent's final income tax return, and other income tax returns for prior years
31.7where the decedent had gross income in excess of the minimum amount at which an
31.8individual is required to file and did not file, must be filed by the decedent's personal
31.9representative, if any. If there is no personal representative, the return or returns must be
31.10filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property
31.11of the decedent.
31.12 (c) The term "gross income," as it is used in this section, has the same meaning given it
31.13in section 290.01, subdivision 20.
31.14 (d) The commissioner of revenue must annually determine the gross income levels at
31.15which individuals are required to file a return for each taxable year based on the amounts
31.16allowed as a deduction under section 290.0123.
31.17 (e) Notwithstanding paragraph (a), an individual must file a Minnesota income tax return
31.18for each taxable year that the taxpayer has made an election to receive advance payments
31.19of the child tax credit under section 290.0661, subdivision 8.
31.20 (f) A claimant who elects to receive advance payments under section 290A.071 must
31.21file a claim for a homestead credit refund as a return to reconcile their advanced payment.
31.22 EFFECTIVE DATE.This section is effective for credits applied to property taxes
31.23payable in 2027 and thereafter.
31.24Sec. 14. Minnesota Statutes 2024, section 290A.03, subdivision 13, is amended to read:
31.25 Subd. 13.Property taxes payable.(a) "Property taxes payable" means the property tax
31.26exclusive of:
31.27 (1) special assessments, penalties, and interest payable on a claimant's homestead after
31.28deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, and;
31.29 (2) any other state paid property tax credits in any calendar year, except the credit under
31.30section 273.1389; and
31.31 (3) after any refund claimed and allowable under section 290A.04, subdivision 2h, that
31.32is first payable in the year that the property tax is payable.
31Article 2 Sec. 14.
REVISOR EAP/VJ 25-0403002/20/25 32.1 (b) In the case of a claimant who makes ground lease payments, "property taxes payable"
32.2includes the amount of the payments directly attributable to the property taxes assessed
32.3against the parcel on which the house is located.
32.4 (c) Regardless of the limitations in section 280A(c)(5) of the Internal Revenue Code,
32.5"property taxes payable" must be apportioned or reduced for the use of a portion of the
32.6claimant's homestead for a business purpose if the claimant deducts any business depreciation
32.7expenses for the use of a portion of the homestead or deducts expenses under section 280A
32.8of the Internal Revenue Code for a business operated in the claimant's homestead.
32.9 (d) For manufactured homes, "property taxes payable" shall also include 17 percent of
32.10the gross rent paid in the preceding year for the site on which the homestead is located.
32.11 (e) When a homestead is owned by two or more persons as joint tenants or tenants in
32.12common, such tenants shall determine between them which tenant may claim the property
32.13taxes payable on the homestead. If they are unable to agree, the matter shall be referred to
32.14the commissioner of revenue whose decision shall be final.
32.15 (f) Property taxes are considered payable in the year prescribed by law for payment of
32.16the taxes.
32.17 (g) In the case of a claim relating to "property taxes payable," the claimant must have
32.18owned and occupied the homestead on January 2 of the year in which the tax is payable and
32.19(i) the property must have been classified as homestead property pursuant to section 273.124,
32.20on or before December 31 of the assessment year to which the "property taxes payable"
32.21relate; or (ii) the claimant must provide documentation from the local assessor that application
32.22for homestead classification has been made on or before December 31 of the year in which
32.23the "property taxes payable" were payable and that the assessor has approved the application.
32.24 EFFECTIVE DATE.This section is effective for refunds based on property taxes
32.25payable in 2027 and thereafter.
32.26Sec. 15. Minnesota Statutes 2024, section 290A.03, is amended by adding a subdivision
32.27to read:
32.28 Subd. 17.Eligible senior claimant."Eligible senior claimant" means a claimant who
32.29has attained at least the age of 65, or in the case of a married claimant filing a joint claim,
32.30one spouse has attained at least the age of 65 and the other spouse has attained at least the
32.31age of 62.
32.32 EFFECTIVE DATE.This section is effective for advance payment elections after
32.33December 31, 2025, for credits applied to property taxes payable in 2027 and thereafter.
32Article 2 Sec. 15.
REVISOR EAP/VJ 25-0403002/20/25 33.1 Sec. 16. Minnesota Statutes 2024, section 290A.03, is amended by adding a subdivision
33.2to read:
33.3 Subd. 18.Homestead credit refund."Homestead credit refund" means the refund under
33.4section 290A.04, subdivision 2.
33.5 EFFECTIVE DATE.This section is effective for advance payment elections after
33.6December 31, 2025, for credits applied to property taxes payable in 2027 and thereafter.
33.7 Sec. 17. [290A.071] ADVANCE CREDIT OF HOMESTEAD CREDIT REFUNDS.
33.8 Subdivision 1.Advance payment election established.The commissioner must establish
33.9a process to allow an eligible senior claimant to elect to receive advance credit of the
33.10homestead credit refund, as provided in this section.
33.11 Subd. 2.Election for senior claimants to receive advance payments.At the time of
33.12filing a claim for the homestead credit refund, an eligible senior claimant may elect to
33.13receive an advance credit of the claimant's homestead credit refund for property taxes payable
33.14in the following year by applying for the advance homestead credit for seniors under section
33.15273.1389. The application must be made in the form and manner specified by the
33.16commissioner, but the claimant must attest that they intend to continue to occupy the same
33.17homestead in the following year.
33.18 Subd. 3.Reconciliation.(a) A claimant's homestead credit refund is reduced by the
33.19amount of any advance homestead credit for seniors under section 273.1389 received by
33.20the claimant. If a claimant's credit exceeds the amount of the refund for which the claimant
33.21was eligible, the claimant must repay to the commissioner the difference between the amount
33.22of advance payments received and the credit amount for which the claimant is eligible.
33.23 (b) The commissioner must deposit repayments under this subdivision in the general
33.24fund.
33.25 (c) A claimant that receives an advance credit under this section and section 273.1389
33.26must file a claim for a homestead credit refund for the property taxes payable year for which
33.27the advance credit was received.
33.28 EFFECTIVE DATE.This section is effective for advance payment elections after
33.29December 31, 2025, for credits applied to property taxes payable in 2027 and thereafter.
33Article 2 Sec. 17.
REVISOR EAP/VJ 25-0403002/20/25 34.1 Sec. 18. Minnesota Statutes 2024, section 469.1812, is amended by adding a subdivision
34.2to read:
34.3 Subd. 2a.Land bank organization."Land bank organization" means an organization
34.4that, at least in part, acquires, holds, or manages vacant, blighted, foreclosed, or tax-forfeited
34.5property for future development, redevelopment, or disposal, and that is either:
34.6 (1) a nonprofit organization exempt from federal income taxation under section 501(c)(3)
34.7of the Internal Revenue Code whose governing board members are elected or appointed by
34.8the state of Minnesota, any political subdivision of the state of Minnesota, or an agency of
34.9the state of Minnesota or its political subdivisions, or are elected or appointed officials of
34.10the state of Minnesota or any of its political subdivisions; or
34.11 (2) a limited liability company of which a nonprofit organization described in clause (1)
34.12is the sole member.
34.13 EFFECTIVE DATE.This section is effective the day following final enactment.
34.14Sec. 19. Minnesota Statutes 2024, section 469.1813, subdivision 1, is amended to read:
34.15 Subdivision 1.Authority.The governing body of a political subdivision may grant a
34.16current or prospective abatement, by contract or otherwise, of the taxes imposed by the
34.17political subdivision on a parcel of property, which may include personal property and
34.18machinery, or defer the payments of the taxes and abate the interest and penalty that otherwise
34.19would apply, if:
34.20 (1) it expects the benefits to the political subdivision of the proposed abatement agreement
34.21to at least equal the costs to the political subdivision of the proposed agreement or intends
34.22the abatement to phase in a property tax increase, as provided in clause (2)(vii); and
34.23 (2) it finds that doing so is in the public interest because it will:
34.24 (i) increase or preserve tax base;
34.25 (ii) provide employment opportunities in the political subdivision;
34.26 (iii) provide or help acquire or construct public facilities;
34.27 (iv) help redevelop or renew blighted areas;
34.28 (v) help provide access to services for residents of the political subdivision;
34.29 (vi) finance or provide public infrastructure;
34Article 2 Sec. 19.
REVISOR EAP/VJ 25-0403002/20/25 35.1 (vii) phase in a property tax increase on the parcel resulting from an increase of 50
35.2percent or more in one year on the estimated market value of the parcel, other than increase
35.3attributable to improvement of the parcel; or
35.4 (viii) stabilize the tax base through equalization of property tax revenues for a specified
35.5period of time with respect to a taxpayer whose real and personal property is subject to
35.6valuation under Minnesota Rules, chapter 8100;
35.7 (ix) provide for the development of affordable housing to households at or below 80
35.8percent of area median income as estimated by the United States Department of Housing
35.9and Urban Development for the political subdivision in which the project is located; or
35.10 (x) allow the property to be held by a land bank organization for future development.
35.11 EFFECTIVE DATE.This section is effective the day following final enactment.
35.12Sec. 20. Minnesota Statutes 2024, section 469.1813, subdivision 6, is amended to read:
35.13 Subd. 6.Duration limit.(a) A political subdivision may grant an abatement for a period
35.14no longer than 15 years, except as provided under paragraph paragraphs (b) and (c). The
35.15abatement period commences in the first year in which the abatement granted is either paid
35.16or retained in accordance with section 469.1815, subdivision 2. The subdivision may specify
35.17in the abatement resolution a shorter duration. If the resolution does not specify a period of
35.18time, the abatement is for eight years. If an abatement has been granted to a parcel of property
35.19and the period of the abatement has expired, the political subdivision that granted the
35.20abatement may not grant another abatement for eight years after the expiration of the first
35.21abatement. This prohibition does not apply to improvements added after and not subject to
35.22the first abatement. Economic abatement agreements for real and personal property subject
35.23to valuation under Minnesota Rules, chapter 8100, are not subject to this prohibition and
35.24may be granted successively.
35.25 (b) A political subdivision proposing to abate taxes for a parcel may request, in writing,
35.26that the other political subdivisions in which the parcel is located grant an abatement for
35.27the property. If one of the other political subdivisions declines, in writing, to grant an
35.28abatement or if 90 days pass after receipt of the request to grant an abatement without a
35.29written response from one of the political subdivisions, the duration limit for an abatement
35.30for the parcel by the requesting political subdivision and any other participating political
35.31subdivision is increased to 20 years. If the political subdivision which declined to grant an
35.32abatement later grants an abatement for the parcel, the 20-year duration limit is reduced by
35.33one year for each year that the declining political subdivision grants an abatement for the
35Article 2 Sec. 20.
REVISOR EAP/VJ 25-0403002/20/25 36.1parcel during the period of the abatement granted by the requesting political subdivision.
36.2The duration limit may not be reduced below the limit under paragraph (a).
36.3 (c) An abatement under subdivision 1, clause (2), items (ix) and (x), may be granted for
36.4a period no longer than five years. This limit also applies if the resolution does not specify
36.5a period of time.
36.6 EFFECTIVE DATE.This section is effective for abatement resolutions approved after
36.7the day following final enactment.
36.8 Sec. 21. Minnesota Statutes 2024, section 469.1813, is amended by adding a subdivision
36.9to read:
36.10 Subd. 11.Repayment.A land bank organization receiving an abatement under
36.11subdivision 1, clause (2), item (ix) or (x), must repay the abatement with interest if the land
36.12for which the abatement was granted is used for a purpose other than the purpose given by
36.13the land bank organization prior to redevelopment. This subdivision applies immediately
36.14after the abatement under this section expires. Land is subject to repayment under this
36.15subdivision for the same number of years that the abatement was granted. Interest under
36.16this section is payable at the rate determined in section 270C.40, subdivision 5.
36.17 EFFECTIVE DATE.This section is effective the day following final enactment.
36.18Sec. 22. Minnesota Statutes 2024, section 477A.30, subdivision 4, is amended to read:
36.19 Subd. 4.Use of proceeds.(a) Counties and Tribal governments that receive a distribution
36.20under this section must use the proceeds to fund new or existing family homeless prevention
36.21and assistance projects or programs. These projects or programs may be administered by a
36.22county, a group of contiguous counties jointly acting together, a city, a group of contiguous
36.23cities jointly acting together, a Tribal government, a group of Tribal governments, or a
36.24community-based nonprofit organization. Each project or program must include plans for:
36.25 (1) targeting families with children who are eligible for a prekindergarten through grade
36.2612 academic program and are:
36.27 (i) living in overcrowded conditions in their current housing;
36.28 (ii) paying more than 50 percent of their income for rent; or
36.29 (iii) lacking a fixed, regular, and adequate nighttime residence;
36.30 (2) targeting unaccompanied youth in need of an alternative residential setting;
36Article 2 Sec. 22.
REVISOR EAP/VJ 25-0403002/20/25 37.1 (3) connecting families with the social services necessary to maintain the families'
37.2stability in their homes, including but not limited to housing navigation, legal representation,
37.3and family outreach; and
37.4 (4) one or more of the following:
37.5 (i) providing rental assistance for a specified period of time which may exceed 24 months;
37.6or
37.7 (ii) providing support and case management services to improve housing stability,
37.8including but not limited to housing navigation and family outreach.
37.9 (b) Aid distributions under this section must not be used to cover the costs of removing
37.10from an encampment any individuals living at the encampment or clearing the encampment
37.11site of any personal property used by individuals living at the encampment.
37.12 (b) (c) Counties may choose not to spend all or a portion of the distribution under this
37.13section. Any unspent funds must be returned to the commissioner of revenue by December
37.1431 of the year following the year that the aid was received. Any funds returned to the
37.15commissioner under this paragraph must be added to the overall distribution of aids certified
37.16under this section in the following year. Any unspent funds returned to the commissioner
37.17after the expiration under subdivision 8 are canceled to the general fund.
37.18 EFFECTIVE DATE.This section is effective beginning with aids payable in 2025.
37.19Sec. 23. Minnesota Statutes 2024, section 477A.30, subdivision 7, is amended to read:
37.20 Subd. 7.Report.(a) No later than January 15, 2025, the commissioner of revenue must
37.21produce a report on projects and programs funded by counties and Tribal governments under
37.22this section. The report must include a list of the projects and programs, the number of
37.23people served by each, and an assessment of how each project and program impacts people
37.24who are currently experiencing homelessness or who are at risk of experiencing
37.25homelessness, as reported by the counties and Tribal governments to the commissioner by
37.26December 31 each year on a form prescribed by the commissioner. The commissioner must
37.27provide a copy of the report to the chairs and ranking minority members of the legislative
37.28committees with jurisdiction over property taxes and services for persons experiencing
37.29homelessness.
37.30 (b) The report in paragraph (a) must be updated every two years in 2027 and 2029 and
37.31the commissioner of revenue must provide copies of the updated reports to the chairs and
37.32ranking minority members of the legislative committees with jurisdiction over property
37.33taxes and services for persons experiencing homelessness by January 15 of the year the
37Article 2 Sec. 23.
REVISOR EAP/VJ 25-0403002/20/25 38.1report is due. Report requirements under this subdivision expire following the report which
38.2includes the final distribution preceding the expiration in subdivision 8 in 2028.
38.3 EFFECTIVE DATE.This section is effective beginning with aids payable in 2025.
38.4 Sec. 24. 2023 AID PENALTY FORGIVENESS; CITY OF STEWART.
38.5 Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Stewart
38.6must receive its aid payment for calendar year 2023 under Minnesota Statutes, section
38.7477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3,
38.8provided that the state auditor certifies to the commissioner of revenue that the state auditor
38.9received the annual financial reporting form for 2022 from the city by June 1, 2025. The
38.10commissioner of revenue must make a payment of $87,501.50 to the city of Stewart by June
38.1130, 2025. An amount sufficient to pay aid under this section is appropriated in fiscal year
38.122025 from the general fund to the commissioner of revenue. This is a onetime appropriation.
38.13 EFFECTIVE DATE.This section is effective the day following final enactment.
38.14Sec. 25. PROPERTY TAX EXEMPTION; RED LAKE NATION COLLEGE.
38.15 (a) Notwithstanding Minnesota Statutes, section 272.02, subdivision 38, paragraph (b),
38.16and any other law to the contrary, property located in the city of Minneapolis acquired by
38.17Red Lake Nation College Without Borders, LLC in either August 2021 or September 2021
38.18is exempt from property taxes payable in 2022 and the portion of property taxes payable in
38.192021 due after the property was acquired. An amount necessary to make a payment to the
38.20county for the property taxes that would be payable but for the exemption is appropriated
38.21from the general fund to the commissioner of revenue in fiscal year 2026. All prior year
38.22penalties, interest, and costs are canceled.
38.23 (b) By August 1, 2025, the auditor of the county in which the property is located must
38.24certify to the commissioner of revenue the amount to be paid by the commissioner of revenue
38.25to the county under paragraph (a). The commissioner of revenue must make this payment
38.26by August 15, 2025.
38.27 EFFECTIVE DATE.This section is effective the day following final enactment.
38.28Sec. 26. APPROPRIATION; ADMINISTRATION OF ADVANCE HOMESTEAD
38.29CREDIT FOR SENIORS.
38.30 $158,000 in fiscal year 2026 and $118,000 in fiscal year 2027 are appropriated from the
38.31general fund to the commissioner of revenue to administer the advance homestead credit
38Article 2 Sec. 26.
REVISOR EAP/VJ 25-0403002/20/25 39.1for seniors in Minnesota Statutes, sections 273.1389 and 290A.071. The base for this
39.2appropriation is $116,000 in fiscal year 2028.
39.3 EFFECTIVE DATE.This section is effective July 1, 2025.
39.4 Sec. 27. REPEALER.
39.5 Minnesota Statutes 2024, section 477A.30, subdivision 8, is repealed.
39.6 ARTICLE 3
39.7 SALES AND USE TAXES
39.8 Section 1. Minnesota Statutes 2024, section 295.53, subdivision 4a, is amended to read:
39.9 Subd. 4a.Credit for research.(a) In addition to the exemptions allowed under
39.10subdivision 1, a hospital or health care provider may claim an annual credit against the total
39.11amount of tax, if any, the hospital or health care provider owes for that calendar year under
39.12sections 295.50 to 295.57. The credit shall equal 2.5 0.5 percent of revenues for patient
39.13services used to fund expenditures for qualifying research conducted by an allowable research
39.14program. The amount of the credit shall not exceed the tax liability of the hospital or health
39.15care provider under sections 295.50 to 295.57.
39.16 (b) For purposes of this subdivision, the following requirements apply:
39.17 (1) expenditures must be for program costs of qualifying research conducted by an
39.18allowable research program;
39.19 (2) an allowable research program must be a formal program of medical and health care
39.20research conducted by an entity which is exempt under section 501(c)(3) of the Internal
39.21Revenue Code as defined in section 289A.02, subdivision 7, or is owned and operated under
39.22authority of a governmental unit;
39.23 (3) qualifying research must:
39.24 (A) be approved in writing by the governing body of the hospital or health care provider
39.25which is taking the deduction under this subdivision;
39.26 (B) have as its purpose the development of new knowledge in basic or applied science
39.27relating to the diagnosis and treatment of conditions affecting the human body;
39.28 (C) be subject to review by individuals with expertise in the subject matter of the proposed
39.29study but who have no financial interest in the proposed study and are not involved in the
39.30conduct of the proposed study; and
39Article 3 Section 1.
REVISOR EAP/VJ 25-0403002/20/25 40.1 (D) be subject to review and supervision by an institutional review board operating in
40.2conformity with federal regulations if the research involves human subjects or an institutional
40.3animal care and use committee operating in conformity with federal regulations if the
40.4research involves animal subjects. Research expenses are not exempt if the study is a routine
40.5evaluation of health care methods or products used in a particular setting conducted for the
40.6purpose of making a management decision. Costs of clinical research activities paid directly
40.7for the benefit of an individual patient are excluded from this exemption. Basic research in
40.8fields including biochemistry, molecular biology, and physiology are also included if such
40.9programs are subject to a peer review process.
40.10 (c) No credit shall be allowed under this subdivision for any revenue received by the
40.11hospital or health care provider in the form of a grant, gift, or otherwise, whether from a
40.12government or nongovernment source, on which the tax liability under section 295.52 is
40.13not imposed.
40.14 (d) The taxpayer shall apply for the credit under this section on the annual return under
40.15section 295.55, subdivision 5.
40.16 (e) Beginning September 1, 2001, if the actual or estimated amount paid under this
40.17section for the calendar year exceeds $2,500,000, the commissioner of management and
40.18budget shall determine the rate of the research credit for the following calendar year to the
40.19nearest one-half percent so that refunds paid under this section will most closely equal
40.20$2,500,000. The commissioner of management and budget shall publish in the State Register
40.21by October 1 of each year the rate of the credit for the following calendar year. A
40.22determination under this section is not subject to the rulemaking provisions of chapter 14.
40.23 EFFECTIVE DATE.This section is effective the day following final enactment.
40.24Sec. 2. [295.85] AMUSEMENT DEVICE GROSS RECEIPTS TAX.
40.25 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
40.26the meanings given.
40.27 (b) "Amusement device" means any electronic or mechanical machine or device that is
40.28activated and operated by providing payment for use to provide entertainment or amusement,
40.29including but not limited to bowling alleys, fortune-telling machines, cranes, foosball tables,
40.30pool tables, video games, pinball machines, batting cages, rides, photo or video booths,
40.31shuffleboard tables, air hockey tables, arcade games, shooting gallery games, dart boards,
40.32and jukeboxes. An amusement device does not include vending machines, lottery devices,
40.33or gaming devices as described in chapters 297E and 349.
40Article 3 Sec. 2.
REVISOR EAP/VJ 25-0403002/20/25 41.1 (c) "Commissioner" means the commissioner of revenue.
41.2 (d) "Gross receipts" means the total amount received in money or by barter or exchange
41.3for sales derived from the making available of amusement devices for play as measured by
41.4the sales price.
41.5 (e) "Providing payment" means activating an amusement device by either:
41.6 (1) inserting a coin, paper currency, or token; swiping a card; entering a code; or using
41.7an electronic payment on the device; or
41.8 (2) giving such payment to a person who activates for play the amusement device.
41.9 Subd. 2.Tax imposed.A tax equal to 6.875 percent of gross receipts from making
41.10available any amusement device for play is imposed on the owners of each device operated
41.11in Minnesota. The tax imposed by this section is in lieu of the taxes imposed by chapter
41.12297A.
41.13 Subd. 3.Administration.Unless specifically provided otherwise, the audit, assessment,
41.14refund, penalty, interest, enforcement, collection remedies, appeal, and administrative
41.15provisions of chapters 270C and 289A that are applicable to taxes imposed under chapter
41.16297A apply to the tax imposed under this section.
41.17 Subd. 4.Returns; payment of tax.(a) An owner of an amusement device must report
41.18the tax on a return prescribed by the commissioner and must remit the tax in a form and
41.19manner prescribed by the commissioner. The return and the tax must be filed and paid using
41.20the filing cycle and due dates provided for taxes imposed under section 289A.20, subdivision
41.214, and chapter 297A.
41.22 (b) Interest must be paid on an overpayment refunded or credited to the taxpayer from
41.23the date of payment of the tax until the date the refund is paid or credited. For purposes of
41.24this subdivision, the date of payment is the due date of the return or the date of actual
41.25payment of the tax, whichever is later.
41.26 Subd. 5.Deposit of revenues.The commissioner must deposit the revenues, including
41.27penalties and interest, derived from the tax imposed by this section as follows:
41.28 (1) the revenue derived from the portion of the tax equal to 6.5 percent must be deposited
41.29into the general fund; and
41.30 (2) the revenue derived from the portion of the tax equal to 0.375 percent must be
41.31deposited pursuant to Minnesota Constitution, article XI, section 15.
41Article 3 Sec. 2.
REVISOR EAP/VJ 25-0403002/20/25 42.1 Subd. 6.Personal debt.The tax imposed by this section, and interest and penalties
42.2imposed with respect to the tax, are a personal debt of the person required to file a return
42.3from the time that the liability for the tax arises, irrespective of when the time for payment
42.4of the liability occurs. The debt must, in the case of the executor or administrator of the
42.5estate of a decedent and in the case of a fiduciary, be that of the person in the person's official
42.6or fiduciary capacity only, unless the person has voluntarily distributed the assets held in
42.7that capacity without reserving sufficient assets to pay the tax, interest, and penalties, in
42.8which event the person is personally liable for any deficiency.
42.9 EFFECTIVE DATE.This section is effective October 1, 2025.
42.10Sec. 3. Minnesota Statutes 2024, section 297A.61, subdivision 3, is amended to read:
42.11 Subd. 3.Sale and purchase.(a) "Sale" and "purchase" include, but are not limited to,
42.12each of the transactions listed in this subdivision. In applying the provisions of this chapter,
42.13the terms "tangible personal property" and "retail sale" include the taxable services listed
42.14in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable
42.15services, unless specifically provided otherwise. Services performed by an employee for
42.16an employer are not taxable. Services performed by a partnership or association for another
42.17partnership or association are not taxable if one of the entities owns or controls more than
42.1880 percent of the voting power of the equity interest in the other entity. Services performed
42.19between members of an affiliated group of corporations are not taxable. For purposes of
42.20the preceding sentence, "affiliated group of corporations" means those entities that would
42.21be classified as members of an affiliated group as defined under United States Code, title
42.2226, section 1504, disregarding the exclusions in section 1504(b).
42.23 (b) Sale and purchase include:
42.24 (1) any transfer of title or possession, or both, of tangible personal property, whether
42.25absolutely or conditionally, for a consideration in money or by exchange or barter; and
42.26 (2) the leasing of or the granting of a license to use or consume, for a consideration in
42.27money or by exchange or barter, tangible personal property, other than a manufactured
42.28home used for residential purposes for a continuous period of 30 days or more.
42.29 (c) Sale and purchase include the production, fabrication, printing, or processing of
42.30tangible personal property for a consideration for consumers who furnish either directly or
42.31indirectly the materials used in the production, fabrication, printing, or processing.
42.32 (d) Sale and purchase include the preparing for a consideration of food. Notwithstanding
42.33section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:
42Article 3 Sec. 3.
REVISOR EAP/VJ 25-0403002/20/25 43.1 (1) prepared food sold by the retailer;
43.2 (2) soft drinks;
43.3 (3) candy; and
43.4 (4) dietary supplements.
43.5 (e) A sale and a purchase includes the furnishing for a consideration of electricity, gas,
43.6water, or steam for use or consumption within this state.
43.7 (f) A sale and a purchase includes the transfer for a consideration of prewritten computer
43.8software whether delivered electronically, by load and leave, or otherwise.
43.9 (g) A sale and a purchase includes the furnishing for a consideration of the following
43.10services:
43.11 (1) the privilege of admission to places of amusement, recreational areas, or athletic
43.12events, and the making available of amusement devices, tanning facilities, reducing salons,
43.13steam baths, health clubs, and spas or athletic facilities;
43.14 (2) lodging and related services by a hotel, rooming house, resort, campground, motel,
43.15or trailer camp, including furnishing the guest of the facility with access to telecommunication
43.16services, and the granting of any similar license to use real property in a specific facility,
43.17other than the renting or leasing of it for a continuous period of 30 days or more under an
43.18enforceable written agreement that may not be terminated without prior notice and including
43.19accommodations intermediary services provided in connection with other services provided
43.20under this clause;
43.21 (3) nonresidential parking services, whether on a contractual, hourly, or other periodic
43.22basis, except for parking at a meter;
43.23 (4) the granting of membership in a club, association, or other organization if:
43.24 (i) the club, association, or other organization makes available for the use of its members
43.25sports and athletic facilities, without regard to whether a separate charge is assessed for use
43.26of the facilities; and
43.27 (ii) use of the sports and athletic facility is not made available to the general public on
43.28the same basis as it is made available to members.
43.29Granting of membership means both onetime initiation fees and periodic membership dues.
43.30Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash
43.31courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming
43.32pools; and other similar athletic or sports facilities;
43Article 3 Sec. 3.
REVISOR EAP/VJ 25-0403002/20/25 44.1 (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
44.2material used in road construction; and delivery of concrete block by a third party if the
44.3delivery would be subject to the sales tax if provided by the seller of the concrete block.
44.4For purposes of this clause, "road construction" means construction of:
44.5 (i) public roads;
44.6 (ii) cartways; and
44.7 (iii) private roads in townships located outside of the seven-county metropolitan area
44.8up to the point of the emergency response location sign; and
44.9 (6) services as provided in this clause:
44.10 (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
44.11and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
44.12drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
44.13include services provided by coin operated facilities operated by the customer;
44.14 (ii) motor vehicle washing, waxing, and cleaning services, including services provided
44.15by coin operated facilities operated by the customer, and rustproofing, undercoating, and
44.16towing of motor vehicles;
44.17 (iii) building and residential cleaning, maintenance, and disinfecting services and pest
44.18control and exterminating services;
44.19 (iv) detective, security, burglar, fire alarm, and armored car services; but not including
44.20services performed within the jurisdiction they serve by off-duty licensed peace officers as
44.21defined in section 626.84, subdivision 1, or services provided by a nonprofit organization
44.22or any organization at the direction of a county for monitoring and electronic surveillance
44.23of persons placed on in-home detention pursuant to court order or under the direction of the
44.24Minnesota Department of Corrections;
44.25 (v) pet grooming services;
44.26 (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
44.27and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant
44.28care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing
44.29contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility
44.30lines. Services performed under a construction contract for the installation of shrubbery,
44.31plants, sod, trees, bushes, and similar items are not taxable;
44Article 3 Sec. 3.
REVISOR EAP/VJ 25-0403002/20/25 45.1 (vii) massages, except when provided by a licensed health care facility or professional
45.2or upon written referral from a licensed health care facility or professional for treatment of
45.3illness, injury, or disease; and
45.4 (viii) the furnishing of lodging, board, and care services for animals in kennels and other
45.5similar arrangements, but excluding veterinary and horse boarding services.
45.6 (h) A sale and a purchase includes the furnishing for a consideration of tangible personal
45.7property or taxable services by the United States or any of its agencies or instrumentalities,
45.8or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.
45.9 (i) A sale and a purchase includes the furnishing for a consideration of
45.10telecommunications services, ancillary services associated with telecommunication services,
45.11and pay television services. Telecommunication services include, but are not limited to, the
45.12following services, as defined in section 297A.669: air-to-ground radiotelephone service,
45.13mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid
45.14wireless calling service, and private communication services. The services in this paragraph
45.15are taxed to the extent allowed under federal law.
45.16 (j) A sale and a purchase includes the furnishing for a consideration of installation if the
45.17installation charges would be subject to the sales tax if the installation were provided by
45.18the seller of the item being installed.
45.19 (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a
45.20customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor
45.21vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02,
45.22subdivision 11.
45.23 (l) A sale and a purchase includes furnishing for a consideration of specified digital
45.24products or other digital products or granting the right for a consideration to use specified
45.25digital products or other digital products on a temporary or permanent basis and regardless
45.26of whether the purchaser is required to make continued payments for such right. Wherever
45.27the term "tangible personal property" is used in this chapter, other than in subdivisions 10
45.28and 38, the provisions also apply to specified digital products, or other digital products,
45.29unless specifically provided otherwise or the context indicates otherwise.
45.30 (m) The sale of the privilege of admission under section 297A.61, subdivision 3,
45.31paragraph (g), clause (1), to a place of amusement, recreational area, or athletic event
45.32includes all charges included in the privilege of admission's sales price, without deduction
45.33for amenities that may be provided, unless the amenities are separately stated and the
45Article 3 Sec. 3.
REVISOR EAP/VJ 25-0403002/20/25 46.1purchaser of the privilege of admission is entitled to add or decline the amenities, and the
46.2amenities are not otherwise taxable.
46.3 (n) A sale and purchase includes the transfer for consideration of a taxable cannabis
46.4product as defined in section 295.81, subdivision 1, paragraph (r).
46.5 EFFECTIVE DATE.This section is effective October 1, 2025.
46.6 Sec. 4. Minnesota Statutes 2024, section 297A.68, subdivision 3a, is amended to read:
46.7 Subd. 3a.Coin-operated entertainment and Amusement devices.Coin-operated
46.8entertainment and Amusement devices as defined in section 295.85, subdivision 1, including,
46.9but not limited to, fortune-telling machines, cranes, foosball and pool tables, video and
46.10pinball games, batting cages, rides, photo or video booths, and jukeboxes are exempt when
46.11purchased by retailers selling admission to places of amusement and making available
46.12amusement devices as provided in section 297A.61, subdivision 3, paragraph (g), clause
46.13(1). Coin-operated entertainment and 295.85. Amusement devices do not include vending
46.14machines, lottery devices, or gaming devices as described in chapters 297E and 349.
46.15 EFFECTIVE DATE.This section is effective October 1, 2025.
46.16Sec. 5. Minnesota Statutes 2024, section 297A.68, subdivision 45, is amended to read:
46.17 Subd. 45.Jukebox music.The purchase of music, either as a digital audio work or in
46.18tangible form such as a record or compact disc, by operators that provide the service of
46.19making available jukeboxes as amusement devices, as provided in section 297A.61,
46.20subdivision 3, paragraph (g), clause (1) 295.85, is exempt if the music is used exclusively
46.21for the jukebox.
46.22 EFFECTIVE DATE.This section is effective October 1, 2025.
46.23Sec. 6. Minnesota Statutes 2024, section 609.902, subdivision 4, is amended to read:
46.24 Subd. 4.Criminal act."Criminal act" means conduct constituting, or a conspiracy or
46.25attempt to commit, a felony violation of chapter 152, or a felony violation of section 297D.09;
46.26299F.79; 299F.80; 299F.82; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222;
46.27609.223; 609.2231; 609.228; 609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343;
46.28609.344; 609.345; 609.42; 609.48; 609.485; 609.495; 609.496; 609.497; 609.498; 609.52,
46.29subdivision 2, if the offense is punishable under subdivision 3, clause (1), if the property is
46.30a firearm, clause (3)(b), or clause (3)(d)(v); section 609.52, subdivision 2, paragraph (a),
46.31clause (1) or (4); 609.527, if the crime is punishable under subdivision 3, clause (4); 609.528,
46Article 3 Sec. 6.
REVISOR EAP/VJ 25-0403002/20/25 47.1if the crime is punishable under subdivision 3, clause (4); 609.53; 609.561; 609.562; 609.582,
47.2subdivision 1 or 2; 609.668, subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86;
47.3609.894, subdivision 3 or 4; 609.895; 624.713; 624.7191; or 626A.02, subdivision 1, if the
47.4offense is punishable under section 626A.02, subdivision 4, paragraph (a). "Criminal act"
47.5also includes conduct constituting, or a conspiracy or attempt to commit, a felony violation
47.6of section 609.52, subdivision 2, clause (3), (4), (15), or (16), if the violation involves an
47.7insurance company as defined in section 60A.02, subdivision 4, a nonprofit health service
47.8plan corporation regulated under chapter 62C, a health maintenance organization regulated
47.9under chapter 62D, or a fraternal benefit society regulated under chapter 64B.
47.10 EFFECTIVE DATE.This section is effective August 1, 2025.
47.11Sec. 7. CITY OF WOODBURY; SALES TAX EXEMPTION FOR CONSTRUCTION
47.12MATERIALS.
47.13 Subdivision 1.Exemption; refund.(a) Materials and supplies used or consumed in and
47.14equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
47.15or remodeling of a water treatment facility, including water pipeline infrastructure and
47.16associated improvements, funded by the city of Woodbury are exempt from sales and use
47.17tax under Minnesota Statutes, chapter 297A, provided that the materials, supplies, and
47.18equipment are purchased after January 31, 2024, and before July 1, 2025.
47.19 (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
47.20297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
47.21under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds must not
47.22be issued until after June 30, 2025.
47.23 Subd. 2.Appropriation.The amount required to pay the refunds under subdivision 1
47.24is appropriated from the general fund to the commissioner of revenue.
47.25 EFFECTIVE DATE.This section is effective retroactively for sales and purchases
47.26made after January 31, 2024, and before July 1, 2025.
47.27Sec. 8. REPEALER.
47.28 Minnesota Statutes 2024, sections 13.4967, subdivision 5; 297D.01; 297D.02; 297D.03;
47.29297D.04; 297D.05; 297D.06; 297D.07; 297D.08; 297D.085; 297D.09, subdivisions 1, 1a,
47.30and 2; 297D.10; 297D.11; 297D.12; and 297D.13, are repealed.
47.31 EFFECTIVE DATE.This section is effective August 1, 2025.
47Article 3 Sec. 8.
REVISOR EAP/VJ 25-0403002/20/25 48.1 ARTICLE 4
48.2 TAX INCREMENT FINANCING
48.3 Section 1. Laws 2010, chapter 389, article 7, section 22, as amended by Laws 2011, chapter
48.4112, article 11, section 16, is amended to read:
48.5 Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT;
48.6SPECIAL RULES.
48.7 (a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax
48.8increment financing plan for a district, the rules under this section apply to a redevelopment
48.9tax increment financing district established by the city or an authority of the city. The
48.10redevelopment tax increment district includes parcels within the area bounded on the east
48.11by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama
48.12Street, on the west by Llama Street, and on the south by a line running parallel to and 600
48.13feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels
48.1428-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka County
48.15Regional Park property in its entirety. A parcel within this area that is included in a tax
48.16increment financing district that was certified before the date of enactment of this act may
48.17be included in the district created under this act if the initial district is decertified.
48.18 (b) The requirements for qualifying a redevelopment tax increment district under
48.19Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located
48.20within the district.
48.21 (c) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
48.22Eligible expenditures within the district include but are not limited to (1) the city's share of
48.23the costs necessary to provide for the construction of the Northstar Transit Station and
48.24related infrastructure, including structured parking, a pedestrian overpass, and roadway
48.25improvements, (2) the cost of land acquired by the city or the housing and redevelopment
48.26authority in and for the city of Ramsey within the district prior to the establishment of the
48.27district, and (3) the cost of public improvements installed within the tax increment financing
48.28district prior to the establishment of the district.
48.29 (d) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
48.30must be undertaken within a five-year period from the date of certification of a tax increment
48.31financing district, is considered to be met for the district if the activities were undertaken
48.32within ten years from the date of certification of the district.
48Article 4 Section 1.
REVISOR EAP/VJ 25-0403002/20/25 49.1 (e) Except for administrative expenses, the in-district percentage for purposes of the
49.2restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for this
49.3district is 100 percent.
49.4 (f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not
49.5apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred
49.6after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of
49.7the tax increment financing plan for the district.
49.8 (g) The requirement of Minnesota Statutes, section 469.178, subdivision 7, paragraph
49.9(b), is considered to be met for the district if the city adopts interfund loan resolutions
49.10reflecting the terms and conditions required by Minnesota Statutes, section 469.178,
49.11subdivision 7, paragraph (d), by December 31, 2025.
49.12 EFFECTIVE DATE.This section is effective the day after the city of Ramsey and its
49.13chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and
49.143.
49.15Sec. 2. Laws 2014, chapter 308, article 6, section 9, as amended by Laws 2017, First
49.16Special Session chapter 1, article 6, section 12, is amended to read:
49.17Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
49.18 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
49.19the meanings given them.
49.20 (b) "City" means the city of Maple Grove.
49.21 (c) "Project area" means all or a portion of the area in the city commencing at a point
49.22130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section
49.2323, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
49.24line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
49.25Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23,
49.26thence south along said west line a distance of 1,200 feet; thence easterly to the east line of
49.27Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
49.28East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance
49.29of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue
49.30North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter
49.31of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west
49.32line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55
49Article 4 Sec. 2.
REVISOR EAP/VJ 25-0403002/20/25 50.1degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section
50.224; thence West along said south line to the east right-of-way line of Zachary Lane; thence
50.3North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
50.4Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said
50.5Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence
50.6South along the east line of said Outlot A and its southerly extension to the south right-of-way
50.7line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
50.8line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of
50.9Section 24; thence South along said east line to the north line of the South Half of the
50.10Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way
50.11line of Jefferson Highway North; thence southerly along the westerly right-of-way line of
50.12Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west
50.13right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot
50.14A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North
50.15Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east
50.16line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south
50.17line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State
50.18Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
50.19westerly right-of-way line of State Highway 169 and the northerly right-of-way line of
50.20Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
50.21line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
50.22Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
50.23westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
50.24and there terminating, provided that the project area includes the rights-of-way for all present
50.25and future highway interchanges abutting the area described in this paragraph, and may
50.26include any additional property necessary to cause the property included in the tax increment
50.27financing district to consist of complete parcels.
50.28 (d) "Soil deficiency district" means a type of tax increment financing district consisting
50.29of a portion of the project area in which the city finds by resolution that the following
50.30conditions exist:
50.31 (1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
50.32the district require substantial filling, grading, or other physical preparation for use; and
50.33 (2) the estimated cost of the physical preparation under clause (1), but excluding costs
50.34directly related to roads as defined in Minnesota Statutes, section 160.01, and local
50.35improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses
50Article 4 Sec. 2.
REVISOR EAP/VJ 25-0403002/20/25 51.1(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before
51.2completion of the preparation.
51.3 Subd. 2.Special rules.(a) If the city elects, upon the adoption of the tax increment
51.4financing plan for a district, the rules under this section apply to a redevelopment district,
51.5renewal and renovation district, soil condition district, or soil deficiency district established
51.6by the city or a development authority of the city in the project area.
51.7 (b) Prior to or upon the adoption of the first tax increment plan subject to the special
51.8rules under this subdivision, the city must find by resolution that parcels consisting of at
51.9least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way,
51.10are characterized by one or more of the following conditions:
51.11 (1) peat or other soils with geotechnical deficiencies that impair development of
51.12commercial buildings or infrastructure;
51.13 (2) soils or terrain that require substantial filling in order to permit the development of
51.14commercial buildings or infrastructure;
51.15 (3) landfills, dumps, or similar deposits of municipal or private waste;
51.16 (4) quarries or similar resource extraction sites;
51.17 (5) floodway; and
51.18 (6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
51.19subdivision 10.
51.20 (c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
51.21relevant condition if at least 70 percent of the area of the parcel contains the relevant
51.22condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
51.23substandard buildings if substandard buildings occupy at least 30 percent of the area of the
51.24parcel.
51.25 (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
51.26extended to eight 13 years for any district, and Minnesota Statutes, section 469.1763,
51.27subdivision 4, does not apply to any district.
51.28 (e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
51.29subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax
51.30increments paid by properties in any district, measured over the life of the district, may be
51.31expended on activities outside the district but within the project area.
51.32 (f) For a soil deficiency district:
51Article 4 Sec. 2.
REVISOR EAP/VJ 25-0403002/20/25 52.1 (1) increments may be collected through 20 25 years after the receipt by the authority
52.2of the first increment from the district;
52.3 (2) increments may be used only to:
52.4 (i) acquire parcels on which the improvements described in item (ii) will occur;
52.5 (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
52.6cost of installing public improvements directly caused by the deficiencies; and
52.7 (iii) pay for the administrative expenses of the authority allocable to the district; and
52.8 (3) any parcel acquired with increments from the district must be sold at no less than
52.9their fair market value.
52.10 (g) Increments spent for any infrastructure costs, whether inside a district or outside a
52.11district but within the project area, are deemed to satisfy the requirements of Minnesota
52.12Statutes, section 469.176, subdivision 4j.
52.13 (h) The authority to approve tax increment financing plans to establish tax increment
52.14financing districts under this section expires June 30, 2020.
52.15 (i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
52.16increments from a soil deficiency district to acquire parcels and for other infrastructure costs
52.17either inside or outside of the district, but within the project area, if the acquisition or
52.18infrastructure is for a qualified development. For purposes of this paragraph, a development
52.19is a qualified development only if all of the following requirements are satisfied:
52.20 (1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken
52.21primarily to serve the development;
52.22 (2) the city has a binding, written commitment and adequate financial assurances from
52.23the developer that the development will be constructed; and
52.24 (3) the development does not consist of retail trade or housing improvements.
52.25 EFFECTIVE DATE.(a) The extension of the five- and six-year rules under this section
52.26are effective the day after the governing body of the city of Maple Grove and its chief
52.27clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
52.28 (b) The district duration extension under this section is effective upon compliance by
52.29the city of Maple Grove, Hennepin County, and Independent School District No. 279 with
52.30the requirements of Minnesota Statutes, section 469.1782, subdivision 2.
52Article 4 Sec. 2.
REVISOR EAP/VJ 25-0403002/20/25 53.1 Sec. 3. Laws 2017, First Special Session chapter 1, article 6, section 22, is amended to
53.2read:
53.3 Sec. 22. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.
53.4 (a) For purposes of computing the duration limits under Minnesota Statutes, section
53.5469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
53.6may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
53.7District. This authority is limited to the first four years of increment or increments derived
53.8from taxes payable in 2023, whichever occurs first.
53.9 (b) If the city elects to waive receipt of increment under paragraph (a), for purposes of
53.10applying any limits based on when the district was certified under Minnesota Statutes,
53.11section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed
53.12to be January 2 of the property tax assessment year for which increment is first received
53.13under the waiver.
53.14 (c) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
53.15extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
53.164, relating to the use of increment after the expiration of the five-year period, is extended
53.17to 11 years for the Ford Site Redevelopment Tax Increment Financing District in the city
53.18of St. Paul.
53.19 EFFECTIVE DATE.This section is effective the day after the governing body of the
53.20city of St. Paul and its chief clerical officer comply with the requirements of Minnesota
53.21Statutes, section 645.021, subdivisions 2 and 3.
53.22Sec. 4. CITY OF BROOKLYN CENTER; TAX INCREMENT FINANCING
53.23AUTHORITY.
53.24 Subdivision 1.Establishment.Under the special rules established in subdivision 2, the
53.25economic development authority of the city of Brooklyn Center or the city of Brooklyn
53.26Center may establish one or more redevelopment tax increment financing districts located
53.27wholly within the area in the city identified as the "Opportunity Site," which includes the
53.28area bounded by Shingle Creek Parkway from Hennepin County State-Aid Highway 10 to
53.29Summit Drive North; Summit Drive North from Shingle Creek Parkway to marked Trunk
53.30Highway 100; marked Trunk Highway 100 from Summit Drive North to Hennepin County
53.31State-Aid Highway 10; and Hennepin County State-Aid Highway 10 from marked Trunk
53.32Highway 100 to Shingle Creek Parkway, together with internal and adjacent roads and
53.33rights-of-way.
53Article 4 Sec. 4.
REVISOR EAP/VJ 25-0403002/20/25 54.1 Subd. 2.Special rules.If the city or the authority establishes a tax increment financing
54.2district under this section, the following special rules apply:
54.3 (1) the district is deemed to meet all the requirements of Minnesota Statutes, section
54.4469.174, subdivision 10; and
54.5 (2) expenditures incurred in connection with the development of the property described
54.6in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
54.7subdivision 4j.
54.8 Subd. 3.Expiration.The authority to approve a tax increment financing plan to establish
54.9a tax increment financing district under this section expires on December 31, 2030.
54.10 EFFECTIVE DATE.This section is effective the day after the governing body of the
54.11city of Brooklyn Center and its chief clerical officer comply with the requirements of
54.12Minnesota Statutes, section 645.021, subdivisions 2 and 3.
54.13Sec. 5. CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING
54.14AUTHORITY; VILLAGE CREEK AREA.
54.15 Subdivision 1.Establishment of districts.Upon the termination of Tax Increment
54.16Financing District No. 20 within the city of Brooklyn Park, under the special rules established
54.17in subdivision 2, the economic development authority of the city of Brooklyn Park or city
54.18of Brooklyn Park may establish one or more redevelopment tax increment financing districts
54.19located wholly within the area of the city of Brooklyn Park. The districts may be comprised
54.20of the following parcels identified by their current parcel identification numbers:
211192133010420119214300992011921430092201192144008854.212011921430101
211192134002121119213400192111921340006211192134000554.222111921340003
281192113000421119213400182111921340017211192133006854.232111921330066
281192122000728119212200022811921210003281192114000754.242811921130005
281192131000128119212401072811921240010281192124000954.252811921240004
281192113002428119211300152811921130014291192112003254.262811921340010
281192121010328119212100232811921210020281192121001454.272811921140012
281192134000628119212400072811921220005281192122000354.282811921220001
211192134000221119213300672011921440089291192112000454.292911921120001
281192113000128119211200012111921340113211192134002754.302111921340004
281192121003328119212100162811921210001281192113002354.312811921130017
291192111000428119212400172811921240006281192121010154.322811921210060
201192143010320119214301022011921430100201192143009354.332911921120005
211192134002021119213400072111921340001211192133010354.342111921330102
54Article 4 Sec. 5.
REVISOR EAP/VJ 25-0403002/20/25 281192113002028119211300022811921120104281192112000255.12111921340022
281192121010228119212100992811921210034281192121002255.22811921130021
281192134000928119213400052811921240012281192124000355.32811921220006
33119212100012911921120043291192112000655.42911921110118
55.5 together with adjacent and internal roads and rights-of-way, and the following roadways
55.6within the city of Brooklyn Park: Zane Avenue North (from and including the intersection
55.7at 78th Avenue North to and including the intersection at Highway 94), Brooklyn Boulevard
55.8(from and including the intersection at the border of Brooklyn Center to and including the
55.9intersection at Kentucky Avenue North), Brookdale Drive North (from and including the
55.10intersection at Zane Avenue North to and including the intersection at Welcome Avenue
55.11North), Village Creek Parkway North, 77th Avenue North (from and including the
55.12intersection at Village Creek Parkway North to and including the intersection at Brookdale
55.13Drive North), 73rd Avenue North/Regent Avenue (from and including the intersection at
55.14Zane Avenue North to and including the intersection at Brooklyn Boulevard).
55.15 Subd. 2.Special rules.If the city or the authority establishes any tax increment financing
55.16district under subdivision 1, the following special rules apply:
55.17 (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
55.18469.174, subdivision 10;
55.19 (2) expenditures incurred in connection with the development of the property described
55.20in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
55.21subdivision 4j; and
55.22 (3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
55.23extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
55.244, relating to the use of increment after the expiration of the five-year period, is extended
55.25to 11 years.
55.26 Subd. 3.Expiration.The authority to request certification of any district under this
55.27section expires on December 31, 2030.
55.28 EFFECTIVE DATE.This section is effective the day after the governing body of the
55.29city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
55.30Statutes, section 645.021, subdivisions 2 and 3.
55Article 4 Sec. 5.
REVISOR EAP/VJ 25-0403002/20/25 56.1 Sec. 6. CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING
56.2AUTHORITY; 610/ZANE AREA.
56.3 Subdivision 1.Establishment of districts.Under the special rules established in
56.4subdivision 2, the economic development authority of the city of Brooklyn Park or the city
56.5of Brooklyn Park may establish one or more redevelopment districts located wholly within
56.6the area of the city of Brooklyn Park. The districts may be comprised of the following
56.7parcels identified by their current parcel identification numbers together with adjacent and
56.8internal roads and rights-of-way:
091192121000709119211200050811921140051081192114005056.90811921410009
091192131000409119212400090911921240006091192123004956.100911921230008
091192143001509119214300140911921430006091192133000956.110911921320018
091192143003309119214300300911921430028091192143002056.120911921430019
091192143005409119214300480911921430040091192143003856.130911921430037
091192143007209119214300710911921430069091192143005956.140911921430055
091192143008309119214300820911921430081091192143008056.150911921430076
091192143009509119214300940911921430088091192143008756.160911921430086
091192121009509119212100050911921430114091192143010456.170911921430099
091192123001109119212300100911921230009091192122007156.180911921220070
091192131000709119212400080911921240005091192123001356.190911921230012
091192134000809119213300110911921330008091192132002356.200911921310009
091192143002509119214300240911921430018091192134001756.210911921340014
091192143004409119214300390911921430035091192143003456.220911921430029
091192143006109119214300600911921430058091192143004956.230911921430045
091192143009009119214300680911921430067091192143006356.240911921430062
091192143010309119214301020911921430098091192143009756.250911921430093
091192121000608119214400080911921430120091192143011356.260911921430112
091192122001709119212200080911921210101091192121010056.270911921210096
091192131001009119212400070911921240004091192123001556.280911921230014
091192134000909119213300120911921330010091192131001256.290911921310011
091192143002609119214300220911921430021091192143001756.300911921430013
091192143004209119214300410911921430036091192143003256.310911921430031
091192143006509119214300640911921430057091192143005356.320911921430046
091192143010509119214301000911921430078091192143007756.330911921430073
091192143011709119214301150911921430110091192143010856.340911921430107
091192122001509119212200140911921210099091192121009756.350911921430118
091192132002409119213200210911921320016091192123000556.360911921220068
091192143001009119214300090911921340016091192134001556.370911921330006
56Article 4 Sec. 6.
REVISOR EAP/VJ 25-0403002/20/25 091192143002709119214300230911921430016091192143001257.10911921430011
091192143005209119214300510911921430050091192143004757.20911921430043
091192143007509119214300740911921430070091192143006657.30911921430056
091192143009109119214300890911921430085091192143008457.40911921430079
091192143010909119214301060911921430101091192143009657.50911921430092
57.6 Unplatted
061192106119214400030911921430119091192143011657.70911921430111
57.8 Subd. 2.Special rules.If the city or the authority establishes any tax increment financing
57.9district under subdivision 1, the following special rules apply:
57.10 (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
57.11469.174, subdivision 10;
57.12 (2) expenditures incurred in connection with the development of the property described
57.13in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
57.14subdivision 4j; and
57.15 (3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
57.16extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
57.174, relating to the use of increment after the expiration of the five-year period, is extended
57.18to 11 years.
57.19 Subd. 3.Expiration.The authority to request certification of any district under this
57.20section expires on December 31, 2030.
57.21 EFFECTIVE DATE.This section is effective the day after the governing body of the
57.22city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
57.23Statutes, section 645.021, subdivisions 2 and 3.
57.24Sec. 7. CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING
57.25AUTHORITY; BIOTECH AREA.
57.26 Subdivision 1.Establishment.Under the special rules established in subdivision 2, the
57.27economic development authority of the city of Brooklyn Park or the city of Brooklyn Park
57.28may establish one or more redevelopment districts located wholly within the area of the
57.29city of Brooklyn Park. The districts may be comprised of the following parcels identified
57.30by their current parcel identification numbers together with adjacent and internal roads and
57.31rights-of-way:
071192124000207119211400070711921140002071192114000157.320711921110007
071192123000107119212200030711921120009071192111000557.330711921240004
57Article 4 Sec. 7.
REVISOR EAP/VJ 25-0403002/20/25 071192111000807119211100060711921110004081192123000458.10711921230002
071192121000307119211400060711921140005071192113000558.20711921120005
08119212200020811921230002071192112000658.30711921110003
58.4 Subd. 2.Special rules.If the city or the authority establishes any tax increment financing
58.5district under subdivision 1, the following special rules apply:
58.6 (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
58.7469.174, subdivision 10;
58.8 (2) expenditures incurred in connection with the development of the property described
58.9in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
58.10subdivision 4j; and
58.11 (3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
58.12extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
58.134, relating to the use of increment after the expiration of the five-year period, is extended
58.14to 11 years.
58.15 Subd. 3.Expiration.The authority to request certification of any district under this
58.16section expires on December 31, 2030.
58.17 EFFECTIVE DATE.This section is effective the day after the governing body of the
58.18city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
58.19Statutes, section 645.021, subdivisions 2 and 3.
58.20Sec. 8. CITY OF EDEN PRAIRIE; TAX INCREMENT FINANCING AUTHORITY;
58.21EDEN PRAIRIE CENTER.
58.22 Subdivision 1.Establishment.Under the special rules established in subdivision 2, the
58.23economic development authority of the city of Eden Prairie or the city of Eden Prairie may
58.24establish one or more redevelopment districts located wholly within the area of the city of
58.25Eden Prairie consisting of parcels, together with adjacent roads and rights-of-way, within
58.26the area surrounded by Flying Cloud Drive, West 78th Street, and Prairie Center Drive.
58.27 Subd. 2.Special rules.If the city or authority establishes a tax increment financing
58.28district under this section, the following special rules apply:
58.29 (1) the districts are deemed to meet the requirements of Minnesota Statutes, section
58.30469.174, subdivision 10; and
58Article 4 Sec. 8.
REVISOR EAP/VJ 25-0403002/20/25 59.1 (2) expenditures incurred in connection with the development of the property described
59.2in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
59.3subdivision 4j.
59.4 Subd. 3.Expiration.The authority to approve a tax increment financing plan to establish
59.5a tax increment financing district under this section expires December 31, 2025.
59.6 EFFECTIVE DATE.This section is effective the day after the governing body of the
59.7city of Eden Prairie and its chief clerical officer comply with Minnesota Statutes, section
59.8645.021, subdivisions 2 and 3.
59.9 Sec. 9. CITY OF EDINA; 72ND & FRANCE 2 TIF DISTRICT; FIVE-YEAR RULE
59.10EXTENSION; DURATION EXTENSION.
59.11 (a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
59.12extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
59.134, relating to the use of increment after the expiration of the five-year period, is extended
59.14to 11 years for Tax Increment Financing District 72nd & France 2 in the city of Edina.
59.15 (b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
59.16city of Edina or its housing and redevelopment authority may elect to extend the duration
59.17of the district by five years for Tax Increment Financing District 72nd & France 2.
59.18 EFFECTIVE DATE.Paragraph (a) is effective the day after the governing body of the
59.19city of Edina and its chief clerical officer comply with the requirements of Minnesota
59.20Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance
59.21by the city of Edina, Hennepin County, and Independent School District No. 273 with the
59.22requirements of Minnesota Statutes, section 469.1782, subdivision 2.
59.23Sec. 10. CITY OF EDINA; 70TH & FRANCE TIF DISTRICT; FIVE-YEAR RULE
59.24EXTENSION; DURATION EXTENSION.
59.25 (a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
59.26extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
59.274, relating to the use of increment after the expiration of the five-year period, is extended
59.28to 11 years for Tax Increment Financing District 70th & France in the city of Edina.
59.29 (b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
59.30city of Edina or its housing and redevelopment authority may elect to extend the duration
59.31of the district by ten years for Tax Increment Financing District 70th & France.
59Article 4 Sec. 10.
REVISOR EAP/VJ 25-0403002/20/25 60.1 EFFECTIVE DATE.Paragraph (a) is effective the day after the governing body of the
60.2city of Edina and its chief clerical officer comply with the requirements of Minnesota
60.3Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance
60.4by the city of Edina, Hennepin County, and Independent School District No. 273 with the
60.5requirements of Minnesota Statutes, section 469.1782, subdivision 2.
60.6 Sec. 11. CITY OF MINNETONKA; OPUS TIF DISTRICT; FIVE-YEAR RULE
60.7EXTENSION.
60.8 The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
60.9extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
60.104, relating to the use of increment after the expiration of the five-year period, is extended
60.11to 11 years for the Opus tax increment financing district established in 2021 by the economic
60.12development authority in the city of Minnetonka.
60.13 EFFECTIVE DATE.This section is effective the day after the governing body of the
60.14city of Minnetonka and its chief clerical officer comply with the requirements of Minnesota
60.15Statutes, section 645.021, subdivisions 2 and 3.
60.16Sec. 12. CITY OF MOORHEAD; TAX INCREMENT FINANCING DISTRICT
60.17NO. 31; FIVE-YEAR RULE EXTENSION.
60.18 The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
60.19extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
60.204, relating to the use of increment after the expiration of the five-year period, is extended
60.21to 11 years for Tax Increment Financing District No. 31 in the city of Moorhead.
60.22 EFFECTIVE DATE.This section is effective the day after the governing body of the
60.23city of Moorhead and its chief clerical officer comply with the requirements of Minnesota
60.24Statutes, section 645.021, subdivisions 2 and 3.
60.25Sec. 13. CITY OF PLYMOUTH; TAX INCREMENT FINANCING AUTHORITY;
60.26FIVE-YEAR RULE EXTENSION.
60.27 Subdivision 1.Establishment.Under the special rules established in subdivision 2, the
60.28city of Plymouth may establish one or more redevelopment districts located wholly within
60.29the city of Plymouth, Hennepin County, Minnesota, limited to the area identified as the city
60.30center district in the Plymouth, Minnesota Zoning Map in effect on January 1, 2024, and
60.31adopted pursuant to section 21000.12 of the Plymouth Zoning Code of Ordinances.
60Article 4 Sec. 13.
REVISOR EAP/VJ 25-0403002/20/25 61.1 Subd. 2.Special rules.If the city establishes a tax increment financing district under
61.2this section, the following special rules apply:
61.3 (1) the district is deemed to meet the requirements of Minnesota Statutes, section 469.174,
61.4subdivision 10;
61.5 (2) expenditures incurred in connection with the development of the property described
61.6in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
61.7subdivision 4j; and
61.8 (3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
61.9extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
61.104, relating to the use of increment after the expiration of the five-year period, is extended
61.11to 11 years.
61.12 Subd. 3.Expiration.The authority to approve a tax increment financing plan to establish
61.13a tax increment financing district under this section expires December 31, 2030.
61.14 EFFECTIVE DATE.This section is effective the day after the governing body of the
61.15city of Plymouth and its chief clerical officer comply with Minnesota Statutes, section
61.16645.021, subdivisions 2 and 3.
61.17Sec. 14. CITY OF ST. CLOUD; TAX INCREMENT FINANCING AUTHORITY.
61.18 Subdivision 1.Establishment.Under the special rules established in subdivision 2, the
61.19economic development authority of the city of St. Cloud or the city of St. Cloud may establish
61.20one or more redevelopment districts adjacent to the Division Street corridor or within the
61.21Central Business District or Fringe Central District, limited to the following parcels identified
61.22by tax identification numbers, together with the adjacent roads and rights-of-way:
61.23 (1) in Stearns County: 82517020000 (Lady Slipper Catalyst Site); 82515440001 (North
61.24Riverfront Catalyst Site); 82515470000; 82515480000 (Empire Catalyst Site); 82518760015
61.25(Swan Lot Catalyst Site); 82528850020 (Riverboat Lot Catalyst Site); and 82528850001
61.26(Former Herberger's); and
61.27 (2) in Benton County: 170037810 (Transit Oriented Development Catalyst Site);
61.28170058101 (Ace Block Catalyst Site); 170042000; 170041600; 170041100; 170041601;
61.29170041200; 170041800; 170059600 (Star Bank Catalyst Site); 170059300 (Riverfront South
61.30Catalyst Site); 170058300; 170059200; 170058600; 170058800; 170059100; and 170058900.
61.31 Subd. 2.Special rules.If the city or authority establishes a tax increment financing
61.32district under this section, the following special rules apply:
61Article 4 Sec. 14.
REVISOR EAP/VJ 25-0403002/20/25 62.1 (1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
62.2469.174, subdivision 10;
62.3 (2) expenditures incurred in connection with the development of the property described
62.4in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
62.5subdivision 4j; and
62.6 (3) increments generated from the districts may be expended for the reconstruction,
62.7expansion, or new construction of adjacent public infrastructure, including but not limited
62.8to public parking, streets, and utilities necessary to serve the development, and all
62.9expenditures under this clause are deemed expended on activities within the district for
62.10purposes of Minnesota Statutes, section 469.1763.
62.11 Subd. 3.Expiration.The authority to approve a tax increment financing plan to establish
62.12a tax increment financing district under this section expires December 31, 2030.
62.13 EFFECTIVE DATE.This section is effective the day after the city of St. Cloud and
62.14its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 2
62.15and 3.
62.16 ARTICLE 5
62.17 SPECIAL LOCAL TAXES
62.18Section 1. Minnesota Statutes 2024, section 469.190, subdivision 1, is amended to read:
62.19 Subdivision 1.Authorization.(a) Notwithstanding section 477A.016 or any other law,
62.20a statutory or home rule charter city may by ordinance, and a town may by the affirmative
62.21vote of the electors at the annual town meeting, or at a special town meeting, impose a tax
62.22of up to three percent on the gross receipts from the furnishing for consideration of lodging
62.23at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing
62.24of it for a continuous period of 30 days or more. A statutory or home rule charter city may
62.25by ordinance impose the tax authorized under this subdivision on the camping site receipts
62.26of a municipal campground.
62.27 (b) A lodging tax imposed under this section, a city charter, or a special law applies to
62.28the entire consideration paid to obtain access to lodging, including ancillary or related
62.29services, such as services provided by an accommodations intermediary as defined in section
62.30297A.61, subdivision 47.
62.31 EFFECTIVE DATE.This section is effective July 1, 2025.
62Article 5 Section 1.
REVISOR EAP/VJ 25-0403002/20/25 63.1 Sec. 2. Minnesota Statutes 2024, section 469.190, subdivision 7, is amended to read:
63.2 Subd. 7.Collection.(a) The statutory or home rule charter city may agree with the
63.3commissioner of revenue that a tax imposed pursuant to this section shall be collected by
63.4the commissioner together with the tax imposed by chapter 297A, and subject to the same
63.5interest, penalties, and other rules and that its proceeds, less the cost of collection, shall be
63.6remitted to the city.
63.7 (b) If a lodging tax imposed under this section, a city charter, or a special law is not
63.8collected by the commissioner of revenue, the local government imposing the tax may, by
63.9ordinance, limit the required filing and remittance of the tax by an accommodations
63.10intermediary to once per calendar year. The local government must inform the
63.11accommodations intermediary of the date when the return or remittance is due and the dates
63.12must coincide with one of the monthly dates for filing and remitting state sales tax under
63.13chapter 297A. The local government must electronically provide an accommodations
63.14intermediary with the geographic and zip code information necessary to properly collect
63.15the tax.
63.16 EFFECTIVE DATE.This section is effective July 1, 2025.
63.17Sec. 3. Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session
63.18chapter 5, article 12, section 87, Laws 2012, chapter 299, article 3, section 3, and Laws
63.192019, First Special Session chapter 6, article 6, section 5, is amended to read:
63.20Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.
63.21 The city may, by resolution, levy in addition to taxes authorized by other law:
63.22 (1) a sales tax of not more than three 2.5 percent on the gross receipts on retail on-sales
63.23of intoxicating liquor and fermented malt beverages when sold at licensed on-sale liquor
63.24establishments located within the downtown taxing area, provided that this tax may not be
63.25imposed if sales of intoxicating liquor and fermented malt beverages are exempt from
63.26taxation under chapter 297A;
63.27 (2) a sales tax of not more than three percent on the gross receipts from the furnishing
63.28for consideration of lodging for a period of less than 30 days at a hotel, motel, rooming
63.29house, tourist court, or trailer camp located within the city by a hotel or motel which has
63.30more than 50 rooms available for lodging; the tax imposed under this clause shall be at a
63.31rate that, when added to the sum of the rate of all other city taxes on lodging in the city of
63.32Minneapolis, equals 6.5 percent; and
63Article 5 Sec. 3.
REVISOR EAP/VJ 25-0403002/20/25 64.1 (3) a sales tax of not more than three 2.5 percent on the gross receipts on all sales of
64.2food primarily for consumption on or off the premises by restaurants and places of
64.3refreshment as defined by resolution of the city that occur within the downtown taxing area.
64.4The taxes authorized by this section must not be terminated before January 1, 2047. The
64.5taxes shall be imposed and may be adjusted periodically by the city council such that the
64.6rates imposed produce revenue sufficient, together with the tax imposed under section 4,
64.7to finance the purposes described in Minnesota Statutes, section 297A.994, and section 4,
64.8subdivisions 3 and 4. These taxes shall be applied, first, as provided in Minnesota Statutes,
64.9section 297A.994, subdivision 3, clauses (1) to (3), and then, solely to pay, secure, maintain,
64.10and fund the payment of any principal of, premium on, and interest on any bonds or any
64.11other purposes in section 4, subdivision 3 or 4. The commissioner of revenue may enter
64.12into appropriate agreements with the city to provide for the collection of these taxes by the
64.13state on behalf of the city. These taxes shall be subject to the same interest, penalties, and
64.14enforcement provisions as the taxes imposed under Minnesota Statutes, chapter 297A.
64.15 EFFECTIVE DATE.This section is effective for sales and purchases made after
64.16September 30, 2025.
64.17Sec. 4. Laws 1986, chapter 400, section 44, as amended by Laws 1995, chapter 264, article
64.182, section 39, and Laws 2009, chapter 88, article 4, section 13, is amended to read:
64.19Sec. 44. DOWNTOWN TAXING AREA.
64.20 If a bill is enacted into law in the 1986 legislative session which authorizes the city of
64.21Minneapolis to issue bonds and expend certain funds including taxes to finance the
64.22acquisition and betterment of a convention center and related facilities, which authorizes
64.23certain taxes to be levied in a downtown taxing area, then, notwithstanding the provisions
64.24of that law "downtown taxing area" shall mean the geographic area bounded by the portion
64.25of the Mississippi River between I-35W and Washington Avenue, the portion of Washington
64.26Avenue between the river and I-35W, the portion of I-35W between Washington Avenue
64.27and 8th Street Portland Avenue South, the portion of 8th Street South between I-35W and
64.28Portland Avenue South, the portion of Portland Avenue South between 8th Street South
64.29and I-94, the portion of I-94 from the intersection of Portland Avenue South to the
64.30intersection of I-94 and the Burlington Northern Railroad tracks Plymouth Avenue North,
64.31the portion of the Burlington Northern Railroad tracks from I-94 Plymouth Avenue North
64.32to the Mississippi River. From Plymouth Avenue North and the Mississippi River south to
64.33Main Street and including Nicollet Island, and the portion of Main Street to Hennepin
64Article 5 Sec. 4.
REVISOR EAP/VJ 25-0403002/20/25 65.1Avenue and the portion of Hennepin Avenue between Main Street and 2nd Street S.E., and
65.2the portion of 2nd Street S.E. between Main Street and Bank Street, and the portion of Bank
65.3Street between 2nd Street S.E. and University Avenue S.E., and the portion of University
65.4Avenue S.E. between Bank Street and I-35W, and by I-35W from University Avenue S.E.,
65.5to the river. The downtown taxing area excludes the area bounded on the south and west
65.6by Oak Grove Street, on the east by Spruce Place, and on the north by West 15th Street.
65.7The downtown taxing area also excludes any property located in a zone that is contained
65.8in chapter 546 of the Minneapolis Zoning Code of Ordinances on which a restaurant with
65.9a wine license is operated.
65.10 EFFECTIVE DATE.This section is effective for sales and purchases made after
65.11September 30, 2025.
65.12 ARTICLE 6
65.13 MISCELLANEOUS
65.14Section 1. Minnesota Statutes 2024, section 349.12, subdivision 25, is amended to read:
65.15 Subd. 25.Lawful purpose.(a) "Lawful purpose" means one or more of the following:
65.16 (1) any expenditure by or contribution to a 501(c)(3) or festival organization, as defined
65.17in subdivision 15c, provided that the organization and expenditure or contribution are in
65.18conformity with standards prescribed by the board under section 349.154, which standards
65.19must apply to both types of organizations in the same manner and to the same extent;
65.20 (2) a contribution to or expenditure for goods and services for an individual or family
65.21suffering from poverty, homelessness, or disability, which is used to relieve the effects of
65.22that suffering;
65.23 (3) a contribution to a program recognized by the Minnesota Department of Human
65.24Services for the education, prevention, or treatment of problem gambling;
65.25 (4) a contribution to or expenditure on a public or private nonprofit educational institution
65.26registered with or accredited by this state or any other state;
65.27 (5) a contribution to an individual, public or private nonprofit educational institution
65.28registered with or accredited by this state or any other state, or to a scholarship fund of a
65.29nonprofit organization whose primary mission is to award scholarships, for defraying the
65.30cost of education to individuals where the funds are awarded through an open and fair
65.31selection process;
65Article 6 Section 1.
REVISOR EAP/VJ 25-0403002/20/25 66.1 (6) activities by an organization or a government entity which recognize military service
66.2to the United States, the state of Minnesota, or a community, subject to rules of the board,
66.3provided that the rules must not include mileage reimbursements in the computation of the
66.4per diem reimbursement limit and must impose no aggregate annual limit on the amount of
66.5reasonable and necessary expenditures made to support:
66.6 (i) members of a military marching or color guard unit for activities conducted within
66.7the state;
66.8 (ii) members of an organization solely for services performed by the members at funeral
66.9services;
66.10 (iii) members of military marching, color guard, or honor guard units may be reimbursed
66.11for participating in color guard, honor guard, or marching unit events within the state or
66.12states contiguous to Minnesota at a per participant rate of up to $50 per diem; or
66.13 (iv) active military personnel and their immediate family members in need of support
66.14services;
66.15 (7) recreational, community, and athletic facilities and activities, intended primarily for
66.16persons under age 21, provided that such facilities and activities do not discriminate on the
66.17basis of gender and the organization complies with section 349.154, subdivision 3a;
66.18 (8) payment of local taxes authorized under this chapter, including local gambling taxes
66.19authorized under section 349.213, subdivision 3, taxes imposed by the United States on
66.20receipts from lawful gambling, the taxes imposed by section 297E.02, subdivisions 1 and
66.216, and the tax imposed on unrelated business income by section 290.05, subdivision 3;
66.22 (9) payment of real estate taxes and assessments on permitted gambling premises owned
66.23by the licensed organization paying the taxes, or wholly leased by a licensed veterans
66.24organization under a national charter recognized under section 501(c)(19) of the Internal
66.25Revenue Code;
66.26 (10) a contribution to the United States, this state or any of its political subdivisions, or
66.27any agency or instrumentality thereof other than a direct contribution to a law enforcement
66.28or prosecutorial agency;
66.29 (11) a contribution to or expenditure by a nonprofit organization which is a church or
66.30body of communicants gathered in common membership for mutual support and edification
66.31in piety, worship, or religious observances;
66.32 (12) an expenditure for citizen monitoring of surface water quality by individuals or
66.33nongovernmental organizations that is consistent with section 115.06, subdivision 4, and
66Article 6 Section 1.
REVISOR EAP/VJ 25-0403002/20/25 67.1Minnesota Pollution Control Agency guidance on monitoring procedures, quality assurance
67.2protocols, and data management, provided that the resulting data is submitted to the
67.3Minnesota Pollution Control Agency for review and inclusion in the state water quality
67.4database;
67.5 (13) a contribution to or expenditure on projects or activities approved by the
67.6commissioner of natural resources for:
67.7 (i) wildlife management projects that benefit the public at large;
67.8 (ii) grant-in-aid trail maintenance and grooming established under sections 84.83 and
67.984.927, and other trails open to public use, including purchase or lease of equipment for
67.10this purpose; and
67.11 (iii) supplies and materials for safety training and educational programs coordinated by
67.12the Department of Natural Resources, including the Enforcement Division;
67.13 (14) conducting nutritional programs, food shelves, and congregate dining programs
67.14primarily for persons who are age 62 or older or disabled;
67.15 (15) a contribution to a community arts organization, or an expenditure to sponsor arts
67.16programs in the community, including but not limited to visual, literary, performing, or
67.17musical arts;
67.18 (16) an expenditure by a licensed fraternal organization or a licensed veterans organization
67.19for payment of water, fuel for heating, electricity, and sewer costs for:
67.20 (i) up to 100 percent for a building wholly owned or wholly leased by and used as the
67.21primary headquarters of the licensed veteran or fraternal organization; or
67.22 (ii) a proportional amount subject to approval by the director and based on the portion
67.23of a building used as the primary headquarters of the licensed veteran or fraternal
67.24organization;
67.25 (17) expenditure by a licensed veterans organization of up to $5,000 in a calendar year
67.26in net costs to the organization for meals and other membership events, limited to members
67.27and spouses, held in recognition of military service. No more than $5,000 can be expended
67.28in total per calendar year under this clause by all licensed veterans organizations sharing
67.29the same veterans post home;
67.30 (18) payment of fees authorized under this chapter imposed by the state of Minnesota
67.31to conduct lawful gambling in Minnesota;
67Article 6 Section 1.
REVISOR EAP/VJ 25-0403002/20/25 68.1 (19) a contribution or expenditure to honor an individual's humanitarian service as
68.2demonstrated through philanthropy or volunteerism to the United States, this state, or local
68.3community;
68.4 (20) a contribution by a licensed organization to another licensed organization with prior
68.5board approval, with the contribution designated to be used for one or more of the following
68.6lawful purposes under this section: clauses (1) to (7), (11) to (15), (19), and (25);
68.7 (21) an expenditure that is a contribution to a parent organization, if the parent
68.8organization: (i) has not provided to the contributing organization within one year of the
68.9contribution any money, grants, property, or other thing of value, and (ii) has received prior
68.10board approval for the contribution that will be used for a program that meets one or more
68.11of the lawful purposes under subdivision 7a;
68.12 (22) an expenditure for the repair, maintenance, or improvement of real property and
68.13capital assets owned by an organization, or for the replacement of a capital asset that can
68.14no longer be repaired, with a fiscal year limit of five percent of gross profits from the
68.15previous fiscal year, with no carryforward of unused allowances. The fiscal year is July 1
68.16through June 30. Total expenditures for the fiscal year may not exceed the limit unless the
68.17board has specifically approved the expenditures that exceed the limit due to extenuating
68.18circumstances beyond the organization's control. An expansion of a building or bar-related
68.19expenditures are not allowed under this provision.
68.20 (i) The expenditure must be related to the portion of the real property or capital asset
68.21that must be made available for use free of any charge to other nonprofit organizations,
68.22community groups, or service groups, and is used for the organization's primary mission or
68.23headquarters.
68.24 (ii) An expenditure may be made to bring an existing building that the organization owns
68.25into compliance with the Americans with Disabilities Act.
68.26 (iii) An organization may apply the amount that is allowed under item (ii) to the erection
68.27or acquisition of a replacement building that is in compliance with the Americans with
68.28Disabilities Act if the board has specifically approved the amount. The cost of the erection
68.29or acquisition of a replacement building may not be made from gambling proceeds, except
68.30for the portion allowed under this item;
68.31 (23) an expenditure for the acquisition or improvement of a capital asset with a cost
68.32greater than $2,000, excluding real property, that will be used exclusively for lawful purposes
68.33under this section if the board has specifically approved the amount;
68Article 6 Section 1.
REVISOR EAP/VJ 25-0403002/20/25 69.1 (24) an expenditure for the acquisition, erection, improvement, or expansion of real
69.2property, if the board has first specifically authorized the expenditure after finding that the
69.3real property will be used exclusively for lawful purpose under this section;
69.4 (25) an expenditure, including a mortgage payment or other debt service payment, for
69.5the erection or acquisition of a comparable building to replace an organization-owned
69.6building that was destroyed or made uninhabitable by fire or catastrophe or to replace an
69.7organization-owned building that was taken or sold under an eminent domain proceeding.
69.8The expenditure may be only for that part of the replacement cost not reimbursed by
69.9insurance for the fire or catastrophe or compensation not received from a governmental unit
69.10under the eminent domain proceeding, if the board has first specifically authorized the
69.11expenditure; or
69.12 (26) a contribution to a 501(c)(19) organization that does not have an organization license
69.13under section 349.16 and is not affiliated with the contributing organization, and whose
69.14owned or leased property is not a permitted premises under section 349.165. The 501(c)(19)
69.15organization may only use the contribution for lawful purposes under this subdivision or
69.16for the organization's primary mission. The 501(c)(19) organization may not use the
69.17contribution for expansion of a building or for bar-related expenditures. A contribution may
69.18not be made to a statewide organization representing a consortia of 501(c)(19) organizations.;
69.19or
69.20 (27) an expenditure for the repair, maintenance, or improvement of real property and
69.21capital assets or for the replacement of a capital asset that can no longer be repaired subject
69.22to the following requirements:
69.23 (i) the capital asset must be owned by one of the following organizations:
69.24 (A) American Legion;
69.25 (B) Veterans of Foreign Wars of the United States (VFW);
69.26 (C) Jewish War Veterans of the United States of America;
69.27 (D) Military Order of the Purple Heart;
69.28 (E) AMVETS;
69.29 (F) Marine Corps League;
69.30 (G) Paralyzed Veterans of America; or
69.31 (H) Disabled American Veterans;
69Article 6 Section 1.
REVISOR EAP/VJ 25-0403002/20/25 70.1 (ii) the expenditure is limited to 50 percent of gross profits from the previous fiscal year.
70.2The fiscal year is July 1 through June 30. Any unused allowances may carry forward for
70.3one fiscal year. Any organization carrying forward funds must identify the planned project
70.4for which the funds will be used prior to carrying forward the unused allowances; and
70.5 (iii) total expenditures for the fiscal year may not exceed the limit imposed under item
70.6(ii) unless the board has specifically approved the expenditures that exceed the limit due to
70.7extenuating circumstances beyond the organization's control. An expansion of a building
70.8or any capital improvements within the building regardless of use of the improvement are
70.9allowed under this provision. This provision applies only to capital improvements to the
70.10existing building square footage and does not apply to the new construction of a new or
70.11replacement building.
70.12 (b) Expenditures authorized by the board under paragraph (a), clauses (24) and (25),
70.13must be 51 percent completed within two years of the date of board approval; otherwise the
70.14organization must reapply to the board for approval of the project. "Fifty-one percent
70.15completed" means that the work completed must represent at least 51 percent of the value
70.16of the project as documented by the contractor or vendor.
70.17 (c) Notwithstanding paragraph (a), "lawful purpose" does not include:
70.18 (1) any expenditure made or incurred for the purpose of influencing the nomination or
70.19election of a candidate for public office or for the purpose of promoting or defeating a ballot
70.20question;
70.21 (2) any activity intended to influence an election or a governmental decision-making
70.22process;
70.23 (3) a contribution to a statutory or home rule charter city, county, or town by a licensed
70.24organization with the knowledge that the governmental unit intends to use the contribution
70.25for a pension or retirement fund; or
70.26 (4) a contribution to a 501(c)(3) organization or other entity with the intent or effect of
70.27not complying with lawful purpose restrictions or requirements.
70.28 EFFECTIVE DATE.This section is effective the day following final enactment.
70.29Sec. 2. [428A.30] DEFINITIONS.
70.30 Subdivision 1.Scope.For purposes of sections 428A.30 to 428A.34, the terms defined
70.31in this section have the meanings given them, unless the context indicates otherwise.
70.32 Subd. 2.City."City" means a statutory or home rule charter city.
70Article 6 Sec. 2.
REVISOR EAP/VJ 25-0403002/20/25 71.1 Subd. 3.District."District" means a land-value taxation district established under section
71.2428A.31.
71.3 Subd. 4.Ordinance."Ordinance" means the ordinance establishing a land-value taxation
71.4district under section 428A.31.
71.5 EFFECTIVE DATE.This section is effective beginning with property taxes payable
71.6in 2026.
71.7 Sec. 3. [428A.31] ESTABLISHMENT OF LAND-VALUE TAXATION DISTRICT.
71.8 Subdivision 1.Ordinance.(a) The governing body of a city may adopt an ordinance
71.9establishing a land-value taxation district. The ordinance must describe:
71.10 (1) the parcels of property constituting the district, either by specific identification of
71.11each parcel, or by defining a geographic area or areas within the city, and then within that
71.12area or those areas, identifying the specific types of property, as defined under section
71.13273.13, to be included in the district; and
71.14 (2) the procedure for reallocating the collective property tax of all parcels within the
71.15district.
71.16 (b) In addition, the ordinance must provide an evaluation of the economic effects of the
71.17district, including the impact on redevelopment of and investment in the district, within a
71.18specified period of time, but not less than 15 years after the date the district becomes
71.19effective.
71.20 Subd. 2.Hearing; notice.Before adopting an ordinance, the governing body of the city
71.21must hold a public hearing on the question. Notice of the hearing must include the time and
71.22place of the hearing, a description of the parcels to be included in the district, a description
71.23of the procedure for reallocating the tax burden among the parcels, and the duration of the
71.24district. Each person owning property in the proposed district must be given the opportunity
71.25to be heard at the hearing. The governing body must publish notice of the hearing on the
71.26city's website and in at least two issues of the official newspaper of the city. The two
71.27publications must be two weeks apart and the hearing must be held at least three days after
71.28the last publication. Not less than ten days before the hearing, the governing body must mail
71.29notice to the owner of each parcel proposed to be included in the district. For the purpose
71.30of the mailed notice, owners are those shown on the records of the county auditor. Other
71.31records may be used to supply the necessary information. At the public hearing, a person
71.32affected by the proposed district may testify on any issues relevant to the proposed district.
71.33The governing body may adjourn the hearing from time to time and may adopt the ordinance
71Article 6 Sec. 3.
REVISOR EAP/VJ 25-0403002/20/25 72.1establishing the district at any time within six months after the date of the conclusion of the
72.2hearing by a vote of the majority of the governing body of the city. Within 30 days after
72.3adoption of the ordinance, the governing body shall send a copy of the ordinance to the
72.4commissioner of revenue.
72.5 EFFECTIVE DATE.This section is effective beginning with property taxes payable
72.6in 2026.
72.7 Sec. 4. [428A.32] RESTRICTIONS ON TAX REALLOCATION PROCEDURE.
72.8 A tax reallocation procedure under section 428A.31, subdivision 1, paragraph (a), clause
72.9(2), must distribute taxes on taxable properties in the district by applying uniform rates to
72.10one or more of the following tax bases:
72.11 (1) the net tax capacity, as defined under section 273.13, subdivision 21b;
72.12 (2) the referendum market value, as defined under section 126C.01, subdivision 3;
72.13 (3) a tax base consisting of each property's estimated market value excluding the market
72.14value attributable to improvements; or
72.15 (4) a tax base consisting of each property's estimated market value excluding the market
72.16value attributable to improvements made after a date specified in the ordinance.
72.17 EFFECTIVE DATE.This section is effective beginning with property taxes payable
72.18in 2026.
72.19Sec. 5. [428A.33] TAXATION WITHIN DISTRICT.
72.20 Subdivision 1.Initial taxation within district.For each property taxes payable year, a
72.21city must compile the total property taxes imposed upon all properties within the district
72.22for each taxing jurisdiction after final property tax statements are issued under section
72.23276.04. For the purposes of this section, the areawide taxes under chapters 276A and 473F,
72.24and the state general levy under section 275.025, are considered to be taxing jurisdictions.
72.25 Subd. 2.Final taxation within district.A city must allocate the tax, as determined
72.26under subdivision 1, among all properties in the district according to the terms of the
72.27ordinance so the entire amount of tax payable to each taxing jurisdiction under subdivision
72.281 is allocated among the properties constituting the district. The city must report the revised
72.29property tax amounts for each parcel of property to the county treasurer by April 30 of the
72.30year the tax is payable. The city must mail revised property tax statements to all properties
72.31within the district by April 30 of the year the tax is payable. Taxpayers must make payments
72Article 6 Sec. 5.
REVISOR EAP/VJ 25-0403002/20/25 73.1according to the dates specified in section 279.01 as if the property tax statements were
73.2mailed 21 days prior to May 15 of the year the taxes are payable.
73.3 Subd. 3.Report to commissioner of revenue.By September 1 of each year, the county
73.4treasurer must report the initial and final distribution of the net tax for each parcel of property
73.5in the district to the commissioner of revenue on a form prescribed by the commissioner of
73.6revenue.
73.7 EFFECTIVE DATE.This section is effective beginning with property taxes payable
73.8in 2026.
73.9 Sec. 6. [428A.34] APPEAL OF LAND VALUE.
73.10 The owner of any property included in a land-value taxation district under section
73.11428A.31 may appeal the valuation attributable to land separately from the valuation
73.12attributable to improvements upon the land under sections 274.01 and 274.13 or chapter
73.13271.
73.14 EFFECTIVE DATE.This section is effective beginning with property taxes payable
73.15in 2026.
73.16Sec. 7. APPROPRIATION; ANOKA COUNTY SOIL AND WATER
73.17CONSERVATION DISTRICT; GRANT.
73.18 $50,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
73.19of revenue for a grant to the Anoka County Soil and Water Conservation District. This is a
73.20onetime appropriation. The grant must be paid by July 15, 2025. The grant under this section
73.21is not subject to retention of administrative costs under Minnesota Statutes, section 16B.98,
73.22subdivision 14.
73.23 EFFECTIVE DATE.This section is effective the day following final enactment.
73.24Sec. 8. APPROPRIATION; CITY OF SOUTH ST. PAUL; GRANT.
73.25 (a) $100,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
73.26of revenue for a grant to the city of South St. Paul. This is a onetime appropriation. The
73.27grant must be paid by June 30, 2025. The grant under this section is not subject to retention
73.28of administrative costs under Minnesota Statutes, section 16B.98, subdivision 14.
73.29 (b) The grant under this section must be used by the city of South St. Paul to pay for
73.30planning and development costs within the city.
73.31 EFFECTIVE DATE.This section is effective the day following final enactment.
73Article 6 Sec. 8.
REVISOR EAP/VJ 25-0403002/20/25 74.1 Sec. 9. CITY OF MINNEAPOLIS; EMERALD ASH BORER FINANCIAL
74.2ASSISTANCE; APPROPRIATION.
74.3 Subdivision 1.Definitions.For the purposes of this section, the following terms have
74.4the meanings given:
74.5 (1) "eligible costs" means costs incurred in 2020 or later for treating or removing a tree
74.6on owner-occupied residential property that has been required by state law or by municipal
74.7ordinance to be treated or removed due to infestation or possible infestation by the emerald
74.8ash borer, including but not limited to costs incurred by the city and assessed to a property
74.9owner;
74.10 (2) "eligible homeowner" means a homeowner who experienced eligible costs related
74.11to a tree on the homeowner's property in an eligible region and whose income is below 200
74.12percent of the official federal poverty guideline;
74.13 (3) "eligible region" means a census block group in Minneapolis with a supplemental
74.14demographic index score in the 70th percentile or higher within the state of Minnesota; and
74.15 (4) "supplemental demographic index" means an index in the Environmental Justice
74.16Screening and Mapping Tool developed by the United States Environmental Protection
74.17Agency that is based on socioeconomic indicators, including low income, unemployment,
74.18less than high school education, limited English speaking, and low life expectancy.
74.19 Subd. 2.Eligible uses; prioritization.(a) The city of Minneapolis must use the full
74.20amount of the aid under this section to pay eligible homeowners for their eligible costs.
74.21 (b) After receiving an application for a payment from an eligible homeowner, the city
74.22must use funds received under this section to directly reduce the remaining balance of an
74.23eligible homeowner's special assessment related to eligible costs. If the original balance of
74.24the special assessment is greater than the remaining balance, the city must reimburse the
74.25eligible homeowner for the difference.
74.26 (c) If the amount of funds available is insufficient to reimburse all eligible homeowners
74.27for the full amount of their eligible costs, the city must prioritize reimbursing a subset of
74.28eligible homeowners for the full amount of their eligible costs.
74.29 (d) After December 31, 2026, the city may use any remaining funds to reimburse other
74.30eligible homeowners who incurred eligible costs but did not have a special assessment
74.31applied to their properties.
74Article 6 Sec. 9.
REVISOR EAP/VJ 25-0403002/20/25 75.1 (e) Notwithstanding paragraph (a), after June 30, 2027, the city may use any remaining
75.2funds to offset the eligible costs of resident homeowners whose properties are not in an
75.3eligible region but who otherwise meet the definition of an eligible homeowner.
75.4 (f) The city must administer the funding under this section within existing city resources
75.5and not with money appropriated in this section.
75.6 Subd. 3.Outreach.The city of Minneapolis must promote the availability of financial
75.7assistance under this section in eligible regions. As part of its outreach efforts, the city
75.8department administering the program under this section must consult with Hope Community,
75.9Metro Blooms, Harrison Neighborhood Association, the Center for Urban and Regional
75.10Affairs at the University of Minnesota, and the public health department of the city.
75.11 Subd. 4.Reporting.On July 1, 2026, and July 1, 2027, the city must report to the
75.12commissioner of revenue on its use of money under this section. By income level and
75.13neighborhood, the report must detail the number of eligible homeowners reimbursed and
75.14the amount of money distributed.
75.15 Subd. 5.Appropriation.$800,000 in fiscal year 2026 is appropriated from the general
75.16fund to the commissioner of revenue for an aid to the city of Minneapolis. This is a onetime
75.17appropriation. The aid must be paid on July 1, 2025. The aid under this section is not subject
75.18to retention of administrative costs under Minnesota Statutes, section 16B.98, subdivision
75.1914.
75.20Sec. 10. APPROPRIATION; CITY OF MINNEAPOLIS.
75.21 (a) The $10,000,000 appropriation from the general fund in Laws 2023, chapter 64,
75.22article 15, section 30, is canceled.
75.23 (b) $8,000,000 in fiscal year 2025 is appropriated from the general fund to the
75.24commissioner of employment and economic development for a grant to the city of
75.25Minneapolis. The balance of the grant must be awarded to a foundation that supports business
75.26advising, branding and marketing, and real estate consulting to businesses located in the
75.27area of Minneapolis bounded by the intersections of West 28th Street and Blaisdell Avenue;
75.28Blaisdell Avenue and West 32nd Street; East 32nd Street and 30th Avenue South; and 30th
75.29Avenue South and East 28th Street. The foundation must use the funds for direct business
75.30support or direct corridor support, including assistance with marketing, place making,
75.31redevelopment, real estate acquisition, and public relations services. The foundation may
75.32subcontract with other organizations to deliver these services. This is a onetime appropriation
75.33and is available until June 30, 2029.
75Article 6 Sec. 10.
REVISOR EAP/VJ 25-0403002/20/25 76.1 (c) $2,000,000 in fiscal year 2025 is appropriated from the general fund to the Public
76.2Facilities Authority for a grant to the city of Minneapolis for the predesign, design,
76.3engineering, and environmental analysis of a water distribution facility to be located in
76.4Hennepin County. This is a onetime appropriation and is available until June 30, 2029. If
76.5the funds under this paragraph are not spent pursuant to this paragraph by June 30, 2029,
76.6the funds must be returned to the commissioner of management and budget and cancel to
76.7the general fund.
76.8 EFFECTIVE DATE.This section is effective the day following final enactment.
76.9 Sec. 11. APPROPRIATION; BROWERVILLE PUBLIC SCHOOLS.
76.10 $....... in fiscal year 2026 is appropriated from the general fund to the commissioner of
76.11revenue for a grant to Browerville public schools, Independent School District No. 787, to
76.12remediate the effects of a school building roof collapse that occurred in 2023. The grant
76.13recipient must use the money appropriated under this section for materials and supplies
76.14used in and equipment incorporated into renovations to the prekindergarten through grade
76.1512 school building, and construction of a new gymnasium, classrooms, locker rooms, a
76.16wrestling and weight room, offices, and a stage. The grant must be paid by July 15, 2025.
76.17This appropriation is onetime. The grant under this section is not subject to retention of
76.18administrative costs under Minnesota Statutes, section 16B.98, subdivision 14.
76.19 EFFECTIVE DATE.This section is effective July 1, 2025.
76Article 6 Sec. 11.
REVISOR EAP/VJ 25-0403002/20/25 Page.Ln 2.5INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES..ARTICLE 1
Page.Ln 12.25PROPERTY TAXES AND LOCAL GOVERNMENT AIDS...............ARTICLE 2
Page.Ln 39.6SALES AND USE TAXES....................................................................ARTICLE 3
Page.Ln 48.1TAX INCREMENT FINANCING.........................................................ARTICLE 4
Page.Ln 62.16SPECIAL LOCAL TAXES....................................................................ARTICLE 5
Page.Ln 65.12MISCELLANEOUS...............................................................................ARTICLE 6
1
APPENDIX
Article locations for 25-04030 13.4967 OTHER TAX DATA CODED ELSEWHERE.
Subd. 5.Marijuana and controlled substance tax information.Disclosure of information
obtained under chapter 297D is governed by section 297D.13, subdivisions 1 to 3.
297D.01 DEFINITIONS.
Subdivision 1.Illegal cannabis."Illegal cannabis" means any taxable cannabis product as
defined in section 295.81, subdivision 1, paragraph (r), whether real or counterfeit, that is held,
possessed, transported, transferred, sold, or offered to be sold in violation of chapter 342 or Minnesota
criminal laws.
Subd. 2.Controlled substance."Controlled substance" means any drug or substance, whether
real or counterfeit, as defined in section 152.01, subdivision 4, that is held, possessed, transported,
transferred, sold, or offered to be sold in violation of Minnesota laws. "Controlled substance" does
not include illegal cannabis.
Subd. 3.Tax obligor or obligor."Tax obligor" or "obligor" means a person who in violation
of Minnesota law manufactures, produces, ships, transports, or imports into Minnesota or in any
manner acquires or possesses more than 42-1/2 grams of illegal cannabis, or seven or more grams
of any controlled substance, or ten or more dosage units of any controlled substance which is not
sold by weight. A quantity of illegal cannabis or other controlled substance is measured by the
weight of the substance whether pure or impure or dilute, or by dosage units when the substance
is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute
if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.
Subd. 4.Commissioner."Commissioner" means the commissioner of revenue.
297D.02 ADMINISTRATION.
The commissioner of revenue shall administer this chapter. The commissioner shall prescribe
the content, format, and manner of all forms and other documents required to be filed under this
chapter pursuant to section 270C.30. Payments required by this chapter must be made to the
commissioner on the form provided by the commissioner. Tax obligors are not required to give
their name, address, Social Security number, or other identifying information on the form. The
commissioner shall collect all taxes under this chapter.
297D.03 RULES.
The commissioner may adopt rules necessary to enforce this chapter. The commissioner shall
adopt a uniform system of providing, affixing, and displaying official stamps, official labels, or
other official indicia for marijuana and controlled substances on which a tax is imposed.
297D.04 TAX PAYMENT REQUIRED FOR POSSESSION.
No tax obligor may possess any illegal cannabis or controlled substance upon which a tax is
imposed by section 297D.08 unless the tax has been paid on the illegal cannabis or a controlled
substance as evidenced by a stamp or other official indicia.
297D.05 NO IMMUNITY.
Nothing in this chapter may in any manner provide immunity for a tax obligor from criminal
prosecution pursuant to Minnesota law.
297D.06 PHARMACEUTICALS.
Nothing in this chapter requires persons registered under chapter 151 or otherwise lawfully in
possession of illegal cannabis or a controlled substance to pay the tax required under this chapter.
297D.07 MEASUREMENT .
For the purpose of calculating the tax under section 297D.08, a quantity of illegal cannabis or
a controlled substance is measured by the weight of the substance whether pure or impure or dilute,
or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A
quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled
substance and any excipients or fillers.
297D.08 TAX RATE.
A tax is imposed on illegal cannabis and controlled substances as defined in section 297D.01
at the following rates:
1R
APPENDIX
Repealed Minnesota Statutes: 25-04030 (1) on each gram of illegal cannabis, or each portion of a gram, $3.50; and
(2) on each gram of controlled substance, or portion of a gram, $200; or
(3) on each ten dosage units of a controlled substance that is not sold by weight, or portion
thereof, $400.
297D.085 CREDIT FOR PREVIOUSLY PAID TAXES.
If another state or local unit of government has previously assessed an excise tax on the illegal
cannabis or controlled substances, the taxpayer must pay the difference between the tax due under
section 297D.08 and the tax previously paid. If the tax previously paid to the other state or local
unit of government was equal to or greater than the tax due under section 297D.08, no tax is due.
The burden is on the taxpayer to show that an excise tax on the illegal cannabis or controlled
substances has been paid to another state or local unit of government.
297D.09 PENALTIES; CRIMINAL PROVISIONS.
Subdivision 1.Penalties.Any tax obligor violating this chapter is subject to a penalty of 100
percent of the tax in addition to the tax imposed by section 297D.08. The penalty will be collected
as part of the tax.
Subd. 1a.Criminal penalty; sale without affixed stamps.In addition to the tax penalty imposed,
a tax obligor distributing or possessing illegal cannabis or controlled substances without affixing
the appropriate stamps, labels, or other indicia is guilty of a crime and, upon conviction, may be
sentenced to imprisonment for not more than seven years or to payment of a fine of not more than
$14,000, or both.
Subd. 2.Statute of limitations.Notwithstanding section 628.26, or any other provision of the
criminal laws of this state, an indictment may be found and filed, or a complaint filed, upon any
criminal offense specified in this section, in the proper court within six years after the commission
of this offense.
297D.10 STAMP PRICE.
Official stamps, labels, or other indicia to be affixed to all illegal cannabis or controlled
substances shall be purchased from the commissioner. The purchaser shall pay 100 percent of face
value for each stamp, label, or other indicia at the time of the purchase.
297D.11 PAYMENT DUE.
Subdivision 1.Stamps affixed.When a tax obligor purchases, acquires, transports, or imports
into this state illegal cannabis or controlled substances on which a tax is imposed by section 297D.08,
and if the indicia evidencing the payment of the tax have not already been affixed, the tax obligor
shall have them permanently affixed on the illegal cannabis or controlled substance immediately
after receiving the substance. Each stamp or other official indicia may be used only once.
Subd. 2.Payable on possession.Taxes imposed upon illegal cannabis or controlled substances
by this chapter are due and payable immediately upon acquisition or possession in this state by a
tax obligor.
297D.12 ALL ASSESSMENTS ARE JEOPARDY.
Subdivision 1.Assessment procedure.An assessment for a tax obligor not possessing valid
stamps or other official indicia showing that the tax has been paid shall be considered a jeopardy
assessment or collection, as provided in section 270C.36. The commissioner shall assess a tax and
applicable penalties based on personal knowledge or information available to the commissioner;
mail the taxpayer at the taxpayer's last known address or serve in person, a written notice of the
amount of tax and penalty; demand its immediate payment; and, if payment is not immediately
made, collect the tax and penalty by any method prescribed in chapter 270C, except that the
commissioner need not await the expiration of the times specified in chapter 270C.
Subd. 2.Injunction prohibited.No person may bring suit to enjoin the assessment or collection
of any taxes, interest, or penalties imposed by this chapter.
Subd. 3.Standard of proof.The tax and penalties assessed by the commissioner are presumed
to be valid and correctly determined and assessed. The burden is upon the taxpayer to show their
incorrectness or invalidity. Any statement filed by the commissioner with the court administrator,
or any other certificate by the commissioner of the amount of tax and penalties determined or
assessed is admissible in evidence and is prima facie evidence of the facts it contains.
2R
APPENDIX
Repealed Minnesota Statutes: 25-04030 297D.13 CONFIDENTIAL NATURE OF INFORMATION.
Subdivision 1.Disclosure prohibited.Notwithstanding any law to the contrary, neither the
commissioner nor a public employee may reveal facts contained in a report or return required by
this chapter or any information obtained from a tax obligor; nor can any information contained in
such a report or return or obtained from a tax obligor be used against the tax obligor in any criminal
proceeding, unless independently obtained, except in connection with a proceeding involving taxes
due under this chapter from the tax obligor making the return.
Subd. 2.Penalty for disclosure.Any person violating this section is guilty of a gross
misdemeanor.
Subd. 3.Statistics.This section does not prohibit the commissioner from publishing statistics
that do not disclose the identity of tax obligors or the contents of particular returns or reports.
Subd. 4.Possession of stamps.A stamp denoting payment of the tax imposed under this chapter
must not be used against the taxpayer in a criminal proceeding, except that the stamp may be used
against the taxpayer in connection with the administration or civil or criminal enforcement of the
tax imposed under this chapter or any similar tax imposed by another state or local unit of
government.
477A.30 LOCAL HOMELESS PREVENTION AID.
Subd. 8.Expiration.Distributions under this section expire after aids payable in 2028 have
been distributed.
3R
APPENDIX
Repealed Minnesota Statutes: 25-04030